Power BI Azure B2B (Business-to-Business) is a collaboration feature that allows organizations to securely share Power BI content with external users. Instead of providing full internal access, Azure B2B enables external users (partners, vendors, and clients) to access dashboards, reports, and datasets while maintaining security and governance.
In this article, we’ll cover:
- What Power BI Azure B2B is
- How to set up external sharing in Power BI
- Best practices for governance and security
- Cost optimization strategies for Azure B2B users
What is Power BI Azure B2B?
Power BI Azure B2B leverages Azure Active Directory (Azure AD) External Identities to allow external users to access Power BI without needing an organizational email. It is useful for:
- Collaborating with external stakeholders while keeping data secure.
- Providing access to Power BI reports and dashboards without creating internal accounts.
- Reducing licensing costs by enabling guest users to access Power BI content.
Key Features of Power BI Azure B2B
✅ External User Access – Share Power BI reports with partners, clients, and vendors securely.
✅ No Internal Account Needed – Guests can use their own email (Gmail, Outlook, corporate email).
✅ Role-Based Access Control (RBAC) – Manage permissions for viewing, editing, and publishing reports.
✅ Multi-Factor Authentication (MFA) – Enforce security for guest users.
✅ Compliance & Auditing – Monitor external user activity for security and compliance.
How Power BI Azure B2B Works
Power BI Azure B2B works by inviting external users as guests in Azure AD and assigning appropriate permissions in Power BI.
Step 1: Add External Users as Guests in Azure AD
- Go to Azure Portal → Azure Active Directory.
- Select Users → New Guest User.
- Enter the external user’s email address.
- Customize the invitation message and click Invite.
- The guest receives an email and accepts the invitation.
Step 2: Assign Guest User Roles in Power BI
- Open Power BI Service → Go to Workspaces.
- Click on Manage Access.
- Add the guest user and assign a role:
- Viewer – Can view reports.
- Contributor – Can edit and share reports.
- Member – Can manage workspace settings.
- Admin – Full control over workspace.
Step 3: Share Reports and Dashboards with Guests
- Go to the Power BI Report or Dashboard.
- Click on Share and enter the guest user’s email.
- Select permissions (Can View, Can Edit).
- Click Send.
Step 4: Configure Security & Governance
- Enable Multi-Factor Authentication (MFA) for guest users.
- Restrict data access using Row-Level Security (RLS).
- Monitor guest user activity using Azure AD logs.
Power BI Azure B2B Licensing Requirements
Guest users in Power BI require appropriate licensing to access shared reports. Here’s how it works:
| Scenario | License Required for Guest | Cost Consideration |
|---|---|---|
| Guest accessing reports in a Pro workspace | Needs Power BI Pro license | Each guest needs a license |
| Guest accessing reports in a Premium workspace | No Power BI Pro required | Unlimited guest access |
| Guest using Power BI Embedded | No license required | Pay-as-you-go pricing |
Best Practice for Cost Savings:
- Use Power BI Premium Capacity (P1, P2, P3) to avoid licensing costs for guest users.
- Use Power BI Embedded (A-SKUs) for external-facing applications.
Power BI Azure B2B vs Traditional Power BI Sharing
| Feature | Power BI Azure B2B | Traditional Power BI Sharing |
|---|---|---|
| Guest Access | ✅ Yes | ❌ No |
| Cross-Organization Collaboration | ✅ Yes | ❌ No |
| External User Licensing | ❌ Required for Pro workspaces | ✅ Internal users need licenses |
| Security & Compliance | ✅ Azure AD governance | ✅ Internal security policies |
Best Practices for Secure Power BI Azure B2B Implementation
To ensure secure and cost-effective collaboration using Power BI Azure B2B, follow these best practices:
1. Implement Row-Level Security (RLS)
- Restrict data access based on user roles.
- Example: If partner A should see only Region A data, configure RLS in Power BI.
2. Use Multi-Factor Authentication (MFA)
- Require MFA for guest users to prevent unauthorized access.
3. Monitor & Audit Guest Activity
- Use Azure AD logs to track guest login activities and report access.
4. Optimize Licensing with Power BI Premium
- Assign Power BI Premium capacity to workspaces with guest users to avoid extra licensing costs.
5. Control External Sharing via Admin Portal
- Restrict Power BI sharing settings to approved domains only.
- Disable anonymous sharing.
Cost Optimization Strategies for Power BI Azure B2B
Managing guest access can become expensive if each external user needs a Power BI Pro license. Here’s how to reduce costs:
1. Use Power BI Premium for Unlimited Guest Access
Why?
- Guest users in Premium Workspaces do not need a Power BI Pro license.
How?
- Assign Power BI Premium (P1, P2, P3) to workspaces where external users are accessing reports.
2. Use Power BI Embedded for External Applications
Why?
- Power BI Embedded (A-SKUs) bills per usage instead of requiring user licenses.
How?
- Use Power BI Embedded for customer-facing applications.
- Assign Embedded capacity to limit usage-based costs.
3. Share Reports via Power BI Service, Not PowerPoint/PDF
Why?
- Exporting reports to PowerPoint/PDF removes interactivity.
- Power BI Service ensures real-time access with minimal licensing.
4. Restrict Unnecessary Guest Access
Why?
- Unused guest accounts increase security risks and licensing costs.
How?
- Use Azure AD Guest Management to automatically remove inactive guests.
Real-World Use Cases for Power BI Azure B2B
1. Financial Services Firm Sharing Reports with Investors
- Problem: Investors need monthly financial reports but cannot be internal users.
- Solution: Use Power BI Azure B2B to grant access to reports without giving full system access.
- Benefit: Secure sharing with cost savings (No need for additional licenses).
2. Healthcare Analytics for Multiple Hospitals
- Problem: Hospital networks need real-time analytics but have separate IT systems.
- Solution: Power BI Azure B2B with Row-Level Security to ensure each hospital sees only its data.
- Benefit: Secure, real-time healthcare analytics.
3. SaaS Company Sharing Dashboards with Clients
- Problem: Customers want embedded analytics inside a SaaS platform.
- Solution: Use Power BI Embedded with Azure B2B to embed dashboards into the SaaS product.
- Benefit: Cost-effective, self-service analytics for customers.
Final Thoughts
Power BI Azure B2B simplifies external collaboration while maintaining security, governance, and cost control. Organizations should:
- Leverage Power BI Premium for unlimited guest access.
- Use Row-Level Security to protect sensitive data.
- Monitor external users via Azure AD logs.
- Optimize licensing with Power BI Embedded for customer-facing applications.
By following these strategies, businesses can effectively manage Power BI Azure B2B while reducing costs and enhancing collaboration.