When selecting a Power BI licensing model, organizations often struggle between Power BI Premium Capacity and Power BI Embedded Capacity. Each serves a different purpose and comes with its own set of advantages. Understanding the key differences can help businesses make an informed decision based on reporting needs, user accessibility, and cost-effectiveness.
This article provides a comprehensive comparison of Power BI Premium and Power BI Embedded, helping you determine the best option for your organization’s analytics needs.
What is Power BI Premium Capacity?
Overview
Power BI Premium Capacity is an enterprise-grade licensing model that provides businesses with dedicated resources for data analytics and reporting. It allows organizations to share reports across a broad audience without requiring individual Power BI Pro licenses for viewers.
Key Features of Power BI Premium Capacity
- Dedicated Cloud-Based Resources – Ensures consistent performance.
- Larger Data Model Storage – Handles datasets up to 400 GB.
- AI Capabilities – Supports machine learning and AI-driven analytics.
- Paginated Reports Support – Ideal for pixel-perfect report generation.
- On-Premise Deployment – Available through Power BI Report Server.
- Unlimited Distribution – Share reports internally and externally.
- Auto-Scale Capabilities – Ensures smooth scaling based on demand.
Who Should Choose Power BI Premium?
- Large Enterprises needing enterprise-wide BI reporting.
- Organizations requiring enhanced AI/ML analytics.
- Businesses looking for high-capacity, large dataset handling.
- IT departments needing on-premise deployment with Power BI Report Server.
- Companies that want unlimited report sharing across the organization.
What is Power BI Embedded Capacity?
Overview
Power BI Embedded Capacity is a licensing model designed for ISVs (Independent Software Vendors) and developers who want to integrate Power BI reports into their own applications without requiring Power BI Pro licenses for users.
Key Features of Power BI Embedded Capacity
- Custom Report Embedding – Embed Power BI reports into custom apps, portals, or websites.
- Pay-As-You-Go Pricing – Flexible pricing based on Power BI capacity SKUs.
- No User Licenses Required – Only developers need Power BI Pro licenses.
- API-Based Integration – Allows full customization of user access.
- Multi-Tenant Deployment – Perfect for SaaS applications.
- Scale Up or Down – Adjust resources dynamically to manage costs.
Who Should Choose Power BI Embedded?
- Software companies & SaaS providers needing embedded analytics.
- Organizations wanting to monetize analytics features by integrating Power BI into their products.
- Developers looking for full API control over reports.
- Businesses that don’t need enterprise-wide licensing but require interactive reports inside apps.
Power BI Premium vs Power BI Embedded: Key Differences
| Feature | Power BI Premium Capacity | Power BI Embedded Capacity |
|---|---|---|
| Target Audience | Large enterprises, organizations with large datasets | Developers, ISVs, SaaS providers |
| User Licensing | Users need Power BI Pro to publish, but not to view | No per-user licensing required for viewing |
| Sharing Capabilities | Share reports across the organization & externally | Embed reports within apps, portals, or SaaS products |
| AI & ML Integration | Yes, supports advanced AI-powered analytics | No built-in AI, but can be customized via APIs |
| Paginated Reports | Yes, supports paginated reports | No native support for paginated reports |
| Power BI Report Server | Yes, for on-premise reporting | No on-premise option |
| Scalability | High-capacity data storage & scalability | API-driven scaling with adjustable SKUs |
| Pricing Model | Fixed pricing for capacity tiers | Flexible, pay-as-you-go pricing |
Choosing Between Power BI Premium and Embedded: Key Factors
1. Business Type
- If you are an enterprise with multiple report consumers, choose Power BI Premium.
- If you are an ISV or SaaS provider embedding reports into your product, choose Power BI Embedded.
2. User Licensing
- Power BI Premium allows sharing across an organization without needing individual Pro licenses.
- Power BI Embedded is best for external users accessing reports via custom applications.
3. Cost Consideration
- Power BI Premium is a flat-rate pricing model, ideal for organizations with high report consumption.
- Power BI Embedded follows a pay-as-you-go model, making it cost-effective for scaling applications.
4. Performance & Scalability
- Power BI Premium offers better performance for large datasets and enterprise analytics.
- Power BI Embedded provides API-driven customization for optimized performance.
Power BI Premium vs Embedded: Pricing Comparison
Power BI Premium Pricing (as of 2025)
| SKU | v-cores | Memory | Monthly Cost |
|---|---|---|---|
| P1 | 8 | 25 GB | $4,995 |
| P2 | 16 | 50 GB | $9,995 |
| P3 | 32 | 100 GB | $19,995 |
Power BI Embedded Pricing (as of 2025)
| SKU | v-cores | Memory | Hourly Cost |
|---|---|---|---|
| A1 | 1 | 3 GB | $0.67 |
| A2 | 2 | 5 GB | $1.34 |
| A3 | 4 | 10 GB | $2.68 |
| A4 | 8 | 25 GB | $5.36 |
Note: Power BI Embedded pricing is billed per hour, making it more flexible for companies with fluctuating workloads.
Final Verdict: Power BI Premium vs Power BI Embedded
| Best for | Power BI Premium | Power BI Embedded |
|---|---|---|
| Large Enterprises | ✅ Yes | ❌ No |
| Developers & ISVs | ❌ No | ✅ Yes |
| Internal Report Sharing | ✅ Yes | ❌ No |
| External User Access via Apps | ❌ No | ✅ Yes |
| Pay-As-You-Go Pricing | ❌ No | ✅ Yes |
| AI & ML Features | ✅ Yes | ❌ No |
Summary
- Power BI Premium Capacity is best for enterprises that need organization-wide analytics, large dataset storage, and AI-driven insights.
- Power BI Embedded Capacity is best for software vendors and SaaS providers looking to embed Power BI reports into their applications with flexible pricing.
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Conclusion
Choosing between Power BI Premium and Power BI Embedded depends on your organization’s needs. Power BI Premium is a better option if you’re an enterprise with internal users. If you’re a developer or SaaS company, Power BI Embedded offers more flexibility and cost efficiency.