COMPLETEGUIDETO
MICROSOFTFABRIC
Features, Business Impact, New Licensing, and
Migration Strategy
Contents What is Microsoft Fabric?
1.
What Does Microsoft Fabric Include?
2.
Microsoft Fabric vs. Power BI and Azure
Synapse: What Has Changed?
3.
New Licensing and Cost Model: How Does It
Impact Your Business?
4.
Which License Do You Need for Microsoft
Fabric? Is Your Current License Still Valid?
5.
Pricing Comparison: Fabric vs. Power BI
Premium
6.
New Microsoft Fabric Pricing Calculator
7.
Cost Optimization Strategies
8.
Transition to Fabric: How Does It Impact Your
Business?
9.
FAQs and Adoption Steps
10.
Conclusion & Additional Resources
11.
Introduction
Microsoft introduced Fabric in preview during the Build conference in
May 2023. After several months in preview, Fabric reached general
availability at the end of 2023 (Ignite, November 2023).
Microsoft describes Fabric as a "superset" of Power BI Premium, as it
includes all Power BI capabilities (modeling, reporting, etc.) along with a
range of advanced new technologies (lakehouse storage, data
engineering with Spark, data science, etc.).
In other words, everything that was previously achieved with Power BI,
Azure Synapse and Data Factory (among other tools) can now be done
within Microsoft Fabric, with the added value of having it all connected
within a unified data fabric*.
*Data Fabric is a type of data architecture that unifies all data sources and applications without requiring data
migration or changes to their storage location. Learn more about data fabric and other types of flexible data
architectures here.
Microsoft Fabric is a unified, end-to-end data
analytics platform offered as a cloud service (SaaS)
by Microsoft. It emerges as the natural evolution of
Microsoft's technology stack, bringing them together
into a single product.
This enables data engineers, data scientists, business
analysts, and other professionals to collaborate within
a single data platform, eliminating silos between
independent products.
1.WhatisMicrosoft
Fabric?
Data Factory:
Data integration and
transformation (ETL/ELT).
Data Engineering:
Data processing with
Apache Spark.
Data Warehouse:
SQL-based analytical
storage.
Data Science:
Machine learning and
predictive modeling.
Real-Time Intelligence:
Streaming data
processing.
Power BI:
Business Intelligence and
data visualization.
Databases:
Database management for
analytical applications.
Industry Solutions:
Tailored solutions for
specific industries and
sectors.
2.WhatDoes
MicrosoftFabric
Include?
A Single Solution for Complete Data
Management.
Microsoft Fabric integrates all the
necessary tools for seamless and
efficient data management within a
single platform. From data integration
and transformation to real-time analysis
and visualization in Power BI, everything
happens in a unified environment, with no
need to move data between systems.
Fabricbringstogether8keycapabilities:
OneLake
A More Efficient, Duplication-Free Data
Architecture
Fabric introduces OneLake, a centralized storage solution
that replaces traditional, fragmented data warehouse and
data lake models. In this new architecture, data no longer
needs to be moved or duplicated across systems, as all tools
within Fabric access the same source of information in an
open format.
Previously, data was stored in proprietary formats (e.g., Power
BI Premium), making integration with other systems more
complex. Now, Fabric adopts open standards such as
Parquet and Delta, enhancing interoperability with external
tools.
Fabric also integrates Microsoft Purview for data
governance, security, and regulatory compliance.
IMPACT ON YOUR BUSINESS
Greater efficiency in data
management, reduced unnecessary
storage, and increased flexibility to
integrate new technologies.
Copilot
Integrated Artificial Intelligence
Fabric also incorporates Generative AI through Copilot,
embedded across all Microsoft Fabric tools. By simply
describing what you need in natural language, Copilot can
generate reports, queries, or machine learning models—
democratizing access to strategic insights for users without
advanced technical expertise.
GET THE GUIDE
Comparative Guide:
Copilot vs ChatGPT vs Gemini AI
Complete comparative guide of Copilot, ChatGPT
and Gemini AI, based on functionalities and
capabilities of each solution
ASaaSModelThatReducesCostsand
AcceleratesInnovation
All tools share the
same interface,
minimizing the learning
curve.
INTUITIVE
EXPERIENCE
Teams can reuse
assets and share
information without
technical barriers.
ENHANCED
COLLABORATION
Security policies are
applied centrally,
reducing risks.
AUTOMATED
SECURITY AND
COMPLIANCE
Fabric automatically
adapts to demand
without manual
adjustments.
EFFORTLESS
SCALABILITY
By operating in the cloud as a managed
service, Microsoft Fabric eliminates the need
for specialized infrastructure.
3.Microsoft
Fabricvs.Power
BIandAzure
Synapse:What
HasChanged?
Previously, managing data in Microsoft required combining multiple
independent solutions: Power BI for business intelligence and data
visualization, Azure Synapse for storage and advanced analytics, and
Azure Data Factory for data integration.
Microsoft Fabric transforms this approach. Now, all teams—data
engineers, analysts, and data scientists—work within the same
environment, eliminating the need to move data across systems.
Additionally, computing resources are dynamically allocated based on
demand, preventing both over-provisioned and underutilized
infrastructures.
IMPACT ON YOUR BUSINESS
Reduced friction between teams, more agile processes,
and lower operational costs.
The shift in licensing and pricing is one of the most significant changes in the
migration to Microsoft Fabric. Before Fabric, Power BI Premium had a fixed
monthly cost, while Azure Synapse charged per usage of each individual
service.
Microsoft Fabric replaces Power BI Premium’s traditional model with a
consumption-based system, eliminating fixed-capacity licenses and adopting
a pay-as-you-go approach.
Fabric unifies these models through a Capacity Unit (CU)-based system:Fabric
unifica estos modelos con un sistema basado en Capacity Units (CUs):
4.NewLicensing
andCostModel:
HowDoesIt
ImpactYour
Business?
Pay only for
the computing
power used at
any given time.
Schedule capacity
increases and
decreases to
optimize costs.
Businesses with variable
workloads can save up to 60%
by reducing consumption
during off-hours.
However, if capacity remains active 24/7 at the same level as Power BI
Premium, costs may increase. For a cost-effective and efficient migration,
expert guidance is recommended.
IMPACT ON BUSINESSES
Greater flexibility and cost optimization, but requires more precise
consumption planning.
5.WhichLicenseDoYouNeedforMicrosoftFabric?IsYour
CurrentLicenseStillValid?
Regarding Power BI licenses, the only licenses discontinued with the transition to Microsoft Fabric are Power BI Premium licenses.
5.1 Licenses That Remain Valid in Microsoft Fabric:
Power BI Pro
Remains unchanged. Users with a Pro
license still need it to create and
publish content in Fabric. The price of
this license will increase by 40%
starting April 1.
Power BI Premium per User (PPU)
Remains unchanged. The price of this
license will also increase by 40%
starting April 1.
Azure Data Services (Synapse, Data
Factory, etc.):
Existing Azure subscriptions/services
continue to operate. Fabric integrates
Azure Synapse Analytics and Azure
Data Factory into a single platform but
does not require companies to
abandon their current services.
Organizations can now choose to use
these services within Fabric under the
new unified license, leveraging
OneLake and other Fabric capabilities.
Power BI Premium per Capacity (P-SKU)
This capacity type must be migrated to Fabric capacities (F-
SKU) upon contract renewal. Microsoft will retire traditional
Premium SKUs starting January 1, 2025, integrating them
into Microsoft Fabric.
In other words, if your company was using P1, P2, etc., you
will need to adopt the equivalent Fabric capacity (F-series)
to continue accessing Premium features.
Power BI Report Server (on-premises)
If your company uses Report Server under Power BI
Premium licenses, be aware that in the future, it will only be
included with Fabric capacities of F64 or higher (reserved
instance).
This means that to retain the right to use Power BI Report
Server (on-premises), your organization must have at least
one Fabric F64 capacity or another eligible license (e.g., SQL
Server EE with SA).
5.WhichLicenseDoYouNeedforMicrosoftFabric?IsYour
CurrentLicenseStillValid?
Regarding Power BI licenses, the only licenses discontinued with the transition to Microsoft Fabric are Power BI Premium licenses.
5.2 Licenses That Require an Upgrade or Migration to Fabric:
6.PricingComparison:Fabricvs.PowerBIPremium
Processing usage measured
in CU-hours.
CAPACITY UNITS (CU)
Pay-as-you-go:
Billed based on CU demand.
1-year or 3-year reservation:
Discounts of up to 40% on
capacity costs.
RESERVATION AND PAY-AS-
YOU-GO OPTIONS
Billed based on GB
consumed.
STORAGE IN ONELAKE
Microsoft Fabric introduces a capacity-based licensing model, replacing fixed-rate pricing. Costs are determined by:
ASPECT POWER BI PREMIUM (P SKU) MICROSOFT FABRIC (F SKU)
Payment Model
Dedicated capacity with a fixed monthly fee
per SKU (e.g., P1, P2…)
Unified capacity with pay-as-you-go pricing (CU-hours +
GB storage) or reserved capacity (fixed payment)
Scalability
Fixed to the purchased capacity size (to
increase resources, upgrade to a higher SKU)
Dynamic: Can scale vertically/horizontally by temporarily
assigning more CUs. Can also be fully paused. Scaling
incurs a cost based on CUs used in the next tier.
Resource Utilization
Resources are exclusive to Power BI (not
shareable with other services)
Shared resources across all Fabric services based on
demand; unused CUs in one workload can be utilized by
another.
Costs During Low
Utilization
Full cost incurred 24/7, regardless of usage
Cost proportional to actual usage; if capacity is inactive
or paused, compute costs are near zero.
Contract Options
Standard annual or monthly subscription (not
tied to Azure)
Integrated with Azure (eligible for MACC). 1-3 year
reservation available with ~40% discount. Pricing varies
by region/currency.
The table below summarizes the pricing changes under Microsoft Fabric’s new consumption model:
7.NewMicrosoftFabricPricingCalculator
To help customers navigate its variable pricing model, Microsoft has launched an online
pricing calculator for Fabric, integrated into the Azure Pricing Calculator.
This tool allows users to select their region, SKU (capacity size), and payment model (pay-as-
you-go or reserved capacity). The calculator then displays the estimated cost per hour and per
month. Additionally, users can specify the amount of storage in OneLake to include that cost
component in their estimate.
The most significant improvement in the Fabric pricing calculator is its interactive scenario-
based modeling. Users can simulate scenarios like: “What if I scale from F64 to F128 for 5
hours a day?” or “How much would 100GB of additional storage cost?” and instantly see the
price impact.
This makes financial planning much easier compared to previous methods that relied on
manual spreadsheets or fixed Power BI Premium pricing tables. Furthermore, since Fabric is
aligned with Azure, customers with Enterprise Agreements (EA) can view these costs as part
of their MACC commitment. The calculator also adjusts pricing based on the customer’s
agreement type (EA, CSP, etc.) upon login.
Exemple: The Azure Pricing Calculator for Fabric displaying hourly costs for different SKUs.
For instance, in the Australia SE region (USD currency), an F2 capacity costs $0.42/hour with
pay-as-you-go, while a 1-year reserved capacity lowers the price to $0.250/hour (approx.
41% savings)—with similar savings for larger SKUs.
Turning off capacity during off-peak hours
Dynamic scaling based on demand
Long-term reservations
Unlike Power BI Premium, which ran 24/7, Fabric allows companies to
pause capacity when not in use. For example, an organization can shut
down capacity during nights or weekends if no users are active. This
can lead to significant savings—potentially reducing monthly costs by
up to 50% if capacity is inactive for half the day.
8.Cost
Optimization
Strategies
While Microsoft Fabric offers greater
capabilities, its pay-as-you-go model
makes active cost management
essential to maximize profitability.
To optimize costs, Bismart recommends
the following strategies:
Turning off capacity during off-peak hours
Long-term reservations
Dynamic scaling based on demand
Fabric enables scheduled or manual adjustments to capacity to handle
workload spikes only when needed. For instance, at the end of the
month, when usage increases, companies can temporarily scale up
capacity and then scale it down again afterward. This ensures peak
performance during critical periods without paying for maximum power
at all times.
8.Cost
Optimization
Strategies
While Microsoft Fabric offers greater
capabilities, its pay-as-you-go model
makes active cost management
essential to maximize profitability.
To optimize costs, Bismart recommends
the following strategies:
Turning off capacity during off-peak hours
Dynamic scaling based on demand
Long-term reservations
Similar to other Azure services, Fabric capacity can be reserved for 1 or
3 years, offering substantial discounts (around 30-40%) depending on
the commitment period. This approach is ideal when Fabric is used
consistently, allowing businesses to lock in a lower rate for a fixed
capacity level.
By implementing these strategies and continuously monitoring consumption,
organizations can control costs while maximizing the value of their investment
—often achieving better cost efficiency than the previous pricing model.
8.Cost
Optimization
Strategies
While Microsoft Fabric offers greater
capabilities, its pay-as-you-go model
makes active cost management
essential to maximize profitability.
To optimize costs, Bismart recommends
the following strategies:
9. Transition to Fabric:
How Does It Impact Your Business?
Businesses with Power BI
Premium Without an
Enterprise Agreement (EA)
If your company had
Power BI Premium under
a standard contract, it
could only be renewed
until February 1, 2025.
After this date, any
renewal or expansion will
require migrating to
Fabric.
Companies with an
active Enterprise
Agreement (EA) have an
extension and can
continue renewing Power
BI Premium until their EA
contract expires.
However, once it expires,
migration to Fabric will
be mandatory.
Businesses with an Active
Enterprise Agreement (EA)
In regions where Fabric is
not yet available (such as
government clouds),
Power BI Premium will
remain an option until
Microsoft announces
specific migration plans.
Exceptions for Sovereign
Clouds
New organizations can
no longer purchase
Power BI Premium
separately. If they
require dedicated BI
capacity, they must
acquire a Fabric license.
New Businesses
(From July 2024)
What Should Business Leaders Do?
Identify which category your company falls into to
proactively prepare for the transition.
Migration to Microsoft Fabric is inevitable, and companies that plan ahead will be able to fully leverage its flexible cost model and
unified data ecosystem.
Assess the costs and benefits of Fabric vs. Power BI
Premium to avoid budget surprises.
Leverage grace periods (if under an active EA) to plan
the migration without operational risks.
What Should Business Leaders Do?
Transitioning to Microsoft Fabric requires strategic planning and analysis to adapt to Microsoft’s new data analytics ecosystem.
Coordinate with
Microsoft
Representatives:
Ensure the transition
to new licenses is
completed before the
deadlines to avoid
disruptions.
Train Your Teams:
While Power BI
remains the same,
Fabric’s expanded
capabilities may
require additional
training to maximize
its potential.
Assess Current
Licenses:
Identify which Power
BI licenses your
organization uses and
how they align with
Fabric’s new
capabilities.
For an efficient and seamless transition, consulting with experts is highly recommended.
Start your transition to Microsoft Fabric today
10.FAQsandAdoptionSteps
Yes. Fabric is Microsoft’s new unified
offering, gradually replacing Power BI
Premium dedicated capacity. Microsoft
plans to retire standalone Power BI
Premium starting in 2025, with some
extensions for large Enterprise
Agreement (EA) customers.
In other words, all organizations must
migrate to Fabric to continue using
Microsoft’s BI platform. Planning ahead
is key to avoiding unexpected
disruptions.
DOES MICROSOFT FABRIC REPLACE
POWER BI PREMIUM? IS
MIGRATION MANDATORY?
For end users, the experience remains
almost unchanged. They will still access
dashboards and reports in Power BI as
before.
After the migration, users may notice
new features in the portal, such as data
science tools or Copilot integration, but
they won’t lose any existing functionality
DOES SWITCHING TO FABRIC AFFECT
END USERS OR INDIVIDUAL POWER
BI LICENSES?
As mentioned earlier, Microsoft Fabric
offers greater flexibility, but it also
requires closer cost monitoring. IT
teams should use Fabric’s built-in usage
monitoring tools to track CU
consumption and storage usage.
Additionally, we recommend using the
Fabric Pricing Calculator to estimate
monthly costs before incurring them.
With effective cost management,
businesses can avoid unexpected
expenses and ensure spending aligns
with the value received—paying only for
the capacity used at any given time.
HOW CAN BUSINESSES AVOID COST
OVERRUNS WITH FABRIC?
11.Conclusion&
Additional
Resources
Microsoft Fabric represents a
fundamental shift in enterprise data
management, integrating the best of
Power BI, Azure Synapse, and other
solutions into a single unified platform.
Throughout this guide, we have explored how Fabric:
Simplifies data analytics with a unified SaaS architecture.
Eliminates silos and duplication through OneLake, its centralized
data lake.
Incorporates AI and Copilot, streamlining tasks and democratizing
access to data.
Optimizes costs with its flexible consumption-based model.
Facilitates migration from Power BI Premium, offering dedicated
tools for a smooth transition.
For businesses, Fabric is an opportunity to enhance collaboration, accelerate
decision-making, and drive AI and Big Data initiatives with a more efficient and
scalable infrastructure. However, success with Fabric requires a clear cost
management and governance strategy to fully unlock its potential.
Additional Resources
Microsoft Fabric
Documentation
Concepts, tutorials, and
admin guides
Microsoft Learn Portal:
"What is Microsoft Fabric?"
Explore More About Microsoft Fabric with These Official Resources:
Details on the Transition
from Power BI to Microsoft
Fabric
Microsoft Fabric: Are Power BI
Licenses Being Phased Out?
Fabric Pricing Calculator
Estimate costs
based on usage
Azure Pricing Calculator
Specialized Support &
Expert Guidance
If your company needs
assistance with the migration
Contact with a Microsoft-
certified partner
info@bismart.com
www.bismart.com
Thankyou!

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EN_Microsoft_Fabric_11Complete_Guide.pdf

  • 1. COMPLETEGUIDETO MICROSOFTFABRIC Features, Business Impact, New Licensing, and Migration Strategy
  • 2. Contents What is Microsoft Fabric? 1. What Does Microsoft Fabric Include? 2. Microsoft Fabric vs. Power BI and Azure Synapse: What Has Changed? 3. New Licensing and Cost Model: How Does It Impact Your Business? 4. Which License Do You Need for Microsoft Fabric? Is Your Current License Still Valid? 5. Pricing Comparison: Fabric vs. Power BI Premium 6. New Microsoft Fabric Pricing Calculator 7. Cost Optimization Strategies 8. Transition to Fabric: How Does It Impact Your Business? 9. FAQs and Adoption Steps 10. Conclusion & Additional Resources 11.
  • 3. Introduction Microsoft introduced Fabric in preview during the Build conference in May 2023. After several months in preview, Fabric reached general availability at the end of 2023 (Ignite, November 2023). Microsoft describes Fabric as a "superset" of Power BI Premium, as it includes all Power BI capabilities (modeling, reporting, etc.) along with a range of advanced new technologies (lakehouse storage, data engineering with Spark, data science, etc.). In other words, everything that was previously achieved with Power BI, Azure Synapse and Data Factory (among other tools) can now be done within Microsoft Fabric, with the added value of having it all connected within a unified data fabric*. *Data Fabric is a type of data architecture that unifies all data sources and applications without requiring data migration or changes to their storage location. Learn more about data fabric and other types of flexible data architectures here.
  • 4. Microsoft Fabric is a unified, end-to-end data analytics platform offered as a cloud service (SaaS) by Microsoft. It emerges as the natural evolution of Microsoft's technology stack, bringing them together into a single product. This enables data engineers, data scientists, business analysts, and other professionals to collaborate within a single data platform, eliminating silos between independent products. 1.WhatisMicrosoft Fabric?
  • 5. Data Factory: Data integration and transformation (ETL/ELT). Data Engineering: Data processing with Apache Spark. Data Warehouse: SQL-based analytical storage. Data Science: Machine learning and predictive modeling. Real-Time Intelligence: Streaming data processing. Power BI: Business Intelligence and data visualization. Databases: Database management for analytical applications. Industry Solutions: Tailored solutions for specific industries and sectors. 2.WhatDoes MicrosoftFabric Include? A Single Solution for Complete Data Management. Microsoft Fabric integrates all the necessary tools for seamless and efficient data management within a single platform. From data integration and transformation to real-time analysis and visualization in Power BI, everything happens in a unified environment, with no need to move data between systems. Fabricbringstogether8keycapabilities:
  • 6. OneLake A More Efficient, Duplication-Free Data Architecture Fabric introduces OneLake, a centralized storage solution that replaces traditional, fragmented data warehouse and data lake models. In this new architecture, data no longer needs to be moved or duplicated across systems, as all tools within Fabric access the same source of information in an open format. Previously, data was stored in proprietary formats (e.g., Power BI Premium), making integration with other systems more complex. Now, Fabric adopts open standards such as Parquet and Delta, enhancing interoperability with external tools. Fabric also integrates Microsoft Purview for data governance, security, and regulatory compliance. IMPACT ON YOUR BUSINESS Greater efficiency in data management, reduced unnecessary storage, and increased flexibility to integrate new technologies.
  • 7. Copilot Integrated Artificial Intelligence Fabric also incorporates Generative AI through Copilot, embedded across all Microsoft Fabric tools. By simply describing what you need in natural language, Copilot can generate reports, queries, or machine learning models— democratizing access to strategic insights for users without advanced technical expertise. GET THE GUIDE Comparative Guide: Copilot vs ChatGPT vs Gemini AI Complete comparative guide of Copilot, ChatGPT and Gemini AI, based on functionalities and capabilities of each solution
  • 8. ASaaSModelThatReducesCostsand AcceleratesInnovation All tools share the same interface, minimizing the learning curve. INTUITIVE EXPERIENCE Teams can reuse assets and share information without technical barriers. ENHANCED COLLABORATION Security policies are applied centrally, reducing risks. AUTOMATED SECURITY AND COMPLIANCE Fabric automatically adapts to demand without manual adjustments. EFFORTLESS SCALABILITY By operating in the cloud as a managed service, Microsoft Fabric eliminates the need for specialized infrastructure.
  • 9. 3.Microsoft Fabricvs.Power BIandAzure Synapse:What HasChanged? Previously, managing data in Microsoft required combining multiple independent solutions: Power BI for business intelligence and data visualization, Azure Synapse for storage and advanced analytics, and Azure Data Factory for data integration. Microsoft Fabric transforms this approach. Now, all teams—data engineers, analysts, and data scientists—work within the same environment, eliminating the need to move data across systems. Additionally, computing resources are dynamically allocated based on demand, preventing both over-provisioned and underutilized infrastructures. IMPACT ON YOUR BUSINESS Reduced friction between teams, more agile processes, and lower operational costs.
  • 10. The shift in licensing and pricing is one of the most significant changes in the migration to Microsoft Fabric. Before Fabric, Power BI Premium had a fixed monthly cost, while Azure Synapse charged per usage of each individual service. Microsoft Fabric replaces Power BI Premium’s traditional model with a consumption-based system, eliminating fixed-capacity licenses and adopting a pay-as-you-go approach. Fabric unifies these models through a Capacity Unit (CU)-based system:Fabric unifica estos modelos con un sistema basado en Capacity Units (CUs): 4.NewLicensing andCostModel: HowDoesIt ImpactYour Business? Pay only for the computing power used at any given time. Schedule capacity increases and decreases to optimize costs. Businesses with variable workloads can save up to 60% by reducing consumption during off-hours. However, if capacity remains active 24/7 at the same level as Power BI Premium, costs may increase. For a cost-effective and efficient migration, expert guidance is recommended. IMPACT ON BUSINESSES Greater flexibility and cost optimization, but requires more precise consumption planning.
  • 11. 5.WhichLicenseDoYouNeedforMicrosoftFabric?IsYour CurrentLicenseStillValid? Regarding Power BI licenses, the only licenses discontinued with the transition to Microsoft Fabric are Power BI Premium licenses. 5.1 Licenses That Remain Valid in Microsoft Fabric: Power BI Pro Remains unchanged. Users with a Pro license still need it to create and publish content in Fabric. The price of this license will increase by 40% starting April 1. Power BI Premium per User (PPU) Remains unchanged. The price of this license will also increase by 40% starting April 1. Azure Data Services (Synapse, Data Factory, etc.): Existing Azure subscriptions/services continue to operate. Fabric integrates Azure Synapse Analytics and Azure Data Factory into a single platform but does not require companies to abandon their current services. Organizations can now choose to use these services within Fabric under the new unified license, leveraging OneLake and other Fabric capabilities.
  • 12. Power BI Premium per Capacity (P-SKU) This capacity type must be migrated to Fabric capacities (F- SKU) upon contract renewal. Microsoft will retire traditional Premium SKUs starting January 1, 2025, integrating them into Microsoft Fabric. In other words, if your company was using P1, P2, etc., you will need to adopt the equivalent Fabric capacity (F-series) to continue accessing Premium features. Power BI Report Server (on-premises) If your company uses Report Server under Power BI Premium licenses, be aware that in the future, it will only be included with Fabric capacities of F64 or higher (reserved instance). This means that to retain the right to use Power BI Report Server (on-premises), your organization must have at least one Fabric F64 capacity or another eligible license (e.g., SQL Server EE with SA). 5.WhichLicenseDoYouNeedforMicrosoftFabric?IsYour CurrentLicenseStillValid? Regarding Power BI licenses, the only licenses discontinued with the transition to Microsoft Fabric are Power BI Premium licenses. 5.2 Licenses That Require an Upgrade or Migration to Fabric:
  • 13. 6.PricingComparison:Fabricvs.PowerBIPremium Processing usage measured in CU-hours. CAPACITY UNITS (CU) Pay-as-you-go: Billed based on CU demand. 1-year or 3-year reservation: Discounts of up to 40% on capacity costs. RESERVATION AND PAY-AS- YOU-GO OPTIONS Billed based on GB consumed. STORAGE IN ONELAKE Microsoft Fabric introduces a capacity-based licensing model, replacing fixed-rate pricing. Costs are determined by:
  • 14. ASPECT POWER BI PREMIUM (P SKU) MICROSOFT FABRIC (F SKU) Payment Model Dedicated capacity with a fixed monthly fee per SKU (e.g., P1, P2…) Unified capacity with pay-as-you-go pricing (CU-hours + GB storage) or reserved capacity (fixed payment) Scalability Fixed to the purchased capacity size (to increase resources, upgrade to a higher SKU) Dynamic: Can scale vertically/horizontally by temporarily assigning more CUs. Can also be fully paused. Scaling incurs a cost based on CUs used in the next tier. Resource Utilization Resources are exclusive to Power BI (not shareable with other services) Shared resources across all Fabric services based on demand; unused CUs in one workload can be utilized by another. Costs During Low Utilization Full cost incurred 24/7, regardless of usage Cost proportional to actual usage; if capacity is inactive or paused, compute costs are near zero. Contract Options Standard annual or monthly subscription (not tied to Azure) Integrated with Azure (eligible for MACC). 1-3 year reservation available with ~40% discount. Pricing varies by region/currency. The table below summarizes the pricing changes under Microsoft Fabric’s new consumption model:
  • 15. 7.NewMicrosoftFabricPricingCalculator To help customers navigate its variable pricing model, Microsoft has launched an online pricing calculator for Fabric, integrated into the Azure Pricing Calculator. This tool allows users to select their region, SKU (capacity size), and payment model (pay-as- you-go or reserved capacity). The calculator then displays the estimated cost per hour and per month. Additionally, users can specify the amount of storage in OneLake to include that cost component in their estimate. The most significant improvement in the Fabric pricing calculator is its interactive scenario- based modeling. Users can simulate scenarios like: “What if I scale from F64 to F128 for 5 hours a day?” or “How much would 100GB of additional storage cost?” and instantly see the price impact. This makes financial planning much easier compared to previous methods that relied on manual spreadsheets or fixed Power BI Premium pricing tables. Furthermore, since Fabric is aligned with Azure, customers with Enterprise Agreements (EA) can view these costs as part of their MACC commitment. The calculator also adjusts pricing based on the customer’s agreement type (EA, CSP, etc.) upon login. Exemple: The Azure Pricing Calculator for Fabric displaying hourly costs for different SKUs. For instance, in the Australia SE region (USD currency), an F2 capacity costs $0.42/hour with pay-as-you-go, while a 1-year reserved capacity lowers the price to $0.250/hour (approx. 41% savings)—with similar savings for larger SKUs.
  • 16. Turning off capacity during off-peak hours Dynamic scaling based on demand Long-term reservations Unlike Power BI Premium, which ran 24/7, Fabric allows companies to pause capacity when not in use. For example, an organization can shut down capacity during nights or weekends if no users are active. This can lead to significant savings—potentially reducing monthly costs by up to 50% if capacity is inactive for half the day. 8.Cost Optimization Strategies While Microsoft Fabric offers greater capabilities, its pay-as-you-go model makes active cost management essential to maximize profitability. To optimize costs, Bismart recommends the following strategies:
  • 17. Turning off capacity during off-peak hours Long-term reservations Dynamic scaling based on demand Fabric enables scheduled or manual adjustments to capacity to handle workload spikes only when needed. For instance, at the end of the month, when usage increases, companies can temporarily scale up capacity and then scale it down again afterward. This ensures peak performance during critical periods without paying for maximum power at all times. 8.Cost Optimization Strategies While Microsoft Fabric offers greater capabilities, its pay-as-you-go model makes active cost management essential to maximize profitability. To optimize costs, Bismart recommends the following strategies:
  • 18. Turning off capacity during off-peak hours Dynamic scaling based on demand Long-term reservations Similar to other Azure services, Fabric capacity can be reserved for 1 or 3 years, offering substantial discounts (around 30-40%) depending on the commitment period. This approach is ideal when Fabric is used consistently, allowing businesses to lock in a lower rate for a fixed capacity level. By implementing these strategies and continuously monitoring consumption, organizations can control costs while maximizing the value of their investment —often achieving better cost efficiency than the previous pricing model. 8.Cost Optimization Strategies While Microsoft Fabric offers greater capabilities, its pay-as-you-go model makes active cost management essential to maximize profitability. To optimize costs, Bismart recommends the following strategies:
  • 19. 9. Transition to Fabric: How Does It Impact Your Business? Businesses with Power BI Premium Without an Enterprise Agreement (EA) If your company had Power BI Premium under a standard contract, it could only be renewed until February 1, 2025. After this date, any renewal or expansion will require migrating to Fabric. Companies with an active Enterprise Agreement (EA) have an extension and can continue renewing Power BI Premium until their EA contract expires. However, once it expires, migration to Fabric will be mandatory. Businesses with an Active Enterprise Agreement (EA) In regions where Fabric is not yet available (such as government clouds), Power BI Premium will remain an option until Microsoft announces specific migration plans. Exceptions for Sovereign Clouds New organizations can no longer purchase Power BI Premium separately. If they require dedicated BI capacity, they must acquire a Fabric license. New Businesses (From July 2024)
  • 20. What Should Business Leaders Do? Identify which category your company falls into to proactively prepare for the transition. Migration to Microsoft Fabric is inevitable, and companies that plan ahead will be able to fully leverage its flexible cost model and unified data ecosystem. Assess the costs and benefits of Fabric vs. Power BI Premium to avoid budget surprises. Leverage grace periods (if under an active EA) to plan the migration without operational risks.
  • 21. What Should Business Leaders Do? Transitioning to Microsoft Fabric requires strategic planning and analysis to adapt to Microsoft’s new data analytics ecosystem. Coordinate with Microsoft Representatives: Ensure the transition to new licenses is completed before the deadlines to avoid disruptions. Train Your Teams: While Power BI remains the same, Fabric’s expanded capabilities may require additional training to maximize its potential. Assess Current Licenses: Identify which Power BI licenses your organization uses and how they align with Fabric’s new capabilities. For an efficient and seamless transition, consulting with experts is highly recommended. Start your transition to Microsoft Fabric today
  • 22. 10.FAQsandAdoptionSteps Yes. Fabric is Microsoft’s new unified offering, gradually replacing Power BI Premium dedicated capacity. Microsoft plans to retire standalone Power BI Premium starting in 2025, with some extensions for large Enterprise Agreement (EA) customers. In other words, all organizations must migrate to Fabric to continue using Microsoft’s BI platform. Planning ahead is key to avoiding unexpected disruptions. DOES MICROSOFT FABRIC REPLACE POWER BI PREMIUM? IS MIGRATION MANDATORY? For end users, the experience remains almost unchanged. They will still access dashboards and reports in Power BI as before. After the migration, users may notice new features in the portal, such as data science tools or Copilot integration, but they won’t lose any existing functionality DOES SWITCHING TO FABRIC AFFECT END USERS OR INDIVIDUAL POWER BI LICENSES? As mentioned earlier, Microsoft Fabric offers greater flexibility, but it also requires closer cost monitoring. IT teams should use Fabric’s built-in usage monitoring tools to track CU consumption and storage usage. Additionally, we recommend using the Fabric Pricing Calculator to estimate monthly costs before incurring them. With effective cost management, businesses can avoid unexpected expenses and ensure spending aligns with the value received—paying only for the capacity used at any given time. HOW CAN BUSINESSES AVOID COST OVERRUNS WITH FABRIC?
  • 23. 11.Conclusion& Additional Resources Microsoft Fabric represents a fundamental shift in enterprise data management, integrating the best of Power BI, Azure Synapse, and other solutions into a single unified platform. Throughout this guide, we have explored how Fabric: Simplifies data analytics with a unified SaaS architecture. Eliminates silos and duplication through OneLake, its centralized data lake. Incorporates AI and Copilot, streamlining tasks and democratizing access to data. Optimizes costs with its flexible consumption-based model. Facilitates migration from Power BI Premium, offering dedicated tools for a smooth transition. For businesses, Fabric is an opportunity to enhance collaboration, accelerate decision-making, and drive AI and Big Data initiatives with a more efficient and scalable infrastructure. However, success with Fabric requires a clear cost management and governance strategy to fully unlock its potential.
  • 24. Additional Resources Microsoft Fabric Documentation Concepts, tutorials, and admin guides Microsoft Learn Portal: "What is Microsoft Fabric?" Explore More About Microsoft Fabric with These Official Resources: Details on the Transition from Power BI to Microsoft Fabric Microsoft Fabric: Are Power BI Licenses Being Phased Out? Fabric Pricing Calculator Estimate costs based on usage Azure Pricing Calculator Specialized Support & Expert Guidance If your company needs assistance with the migration Contact with a Microsoft- certified partner