For a long time, many companies relied on Power BI Premium with a simple, fixed monthly fee. But big changes are coming. Starting January 1, 2025, Microsoft is retiring the old “per capacity” Power BI Premium model. Instead, you’ll need to switch to Microsoft Fabric and the question of cost comes to mind.
This shift can feel overwhelming. Fabric introduces new pricing models that seem more complex. It’s not as simple as paying a flat monthly fee anymore. Now, you can scale your usage up or down, pay-as-you-go, or even buy annual reservations for a discount. The question for smaller businesses is: how do you keep your costs under control?
In this article, we’ll break down the challenges and share practical tips. Our focus is on what’s best for your business, not what’s best for Microsoft. Let’s dive in.
Understanding the New Cost Model
Under the old Power BI Premium system, you paid a set amount each month for a capacity tier – like P1 or P2 – and got a predictable bill. Under Fabric, pricing may feel more like a utility bill. You pay based on what you actually use. That flexibility can save you money – if you plan wisely. But if you’re not careful, you might end up paying more.
Here’s the deal: Fabric offers different capacity sizes, called “F SKUs.” You can also choose pay-as-you-go or commit to a reserved capacity for a year to lock in savings. On top of that, some scenarios that used to let you share reports with unlimited viewers might now require those viewers to have their own licenses. For a small business, these changes mean you have to think strategically about who needs what access, how often, and when.
Common Cost Challenges for SMBs
Small and mid-sized companies don’t always have large IT teams or deep budgets. The new model demands attention and planning. You might worry about:
• Over-Provisioning: Buying a bigger capacity than you need.
• Paying for Idle Time: Running full capacity 24/7 when you only need it during business hours.
• Extra Viewer Licenses: Providing Pro licenses for employees who just view reports occasionally.
Without a plan, these costs can add up fast.
Strategies to Keep Costs Down
So, how can you navigate this new world without blowing your budget?
1. Start Small:
Don’t jump straight into a big capacity. Begin with a smaller Fabric SKU that meets your basic needs. See how it goes. If you need more capacity later, you can scale up.
2. Mix and Match Licensing:
Not everyone needs a Pro license. Give your heavy data analysts full access, but casual viewers might be fine with minimal features. Finding the right mix can save a lot of money.
3. Watch Your Usage Patterns:
Do you need full capacity at 2 AM? If not, scale down after hours or on weekends. Pay-as-you-go options let you spin capacity up and down to match demand. With a little monitoring, you won’t pay for what you don’t use.
4. Try Annual Reservations If Steady:
If you know your workload is steady, consider an annual reserved capacity. It might cost more upfront, but you’ll pay less over time.
Tools and Tips for Monitoring Costs
Knowledge is power. Track your usage closely:
• Usage Analytics: Regularly review reports that show how much capacity you’re using.
• Set Alerts and Limits: Many cloud tools let you set spending alerts. Use them.
• Third-Party Services: Consider hiring a consultant or using a specialist tool if you’re unsure how to start. Sometimes a small upfront cost in advice can save a lot later.
Check for Microsoft Discounts and Trials
Don’t be shy about talking to your Microsoft account rep. They might have special promotions or can guide you on how to make the most of your new setup. Also, try any trials offered. Run a test environment for a few weeks to see what you really need before making a big financial commitment.
Balance Features and Budget
Do you need every advanced analytics feature right away? Maybe not. Focus on what truly helps your team right now. You can always scale up as your company grows or as new features become essential.
Next Steps
• Assess Your Needs: Figure out what you’re using now and how that might change.
• Run a Pilot: Start small, test the waters, and adjust.
• Review Costs Regularly: Don’t set it and forget it. Make cost checks part of your routine.
Conclusion
The switch to Microsoft Fabric is a big change. But with the right approach, SMBs can control costs, stay nimble, and even find new savings. Remember, you’re in control. Plan, adjust, and keep a close eye on your usage. Over time, you’ll find the sweet spot that delivers the insights you need without busting your budget.