Microsoft Fabric vs Power BI: Which is right for your business?
Microsoft Fabric vs Power BI: Which is right for your business?
November 5th, 2025
6 min read
Digital transformation is key to improving business productivity and supporting growth. Microsoft offers two powerful platforms for organisations looking to harness data more effectively: Microsoft Fabric and Power BI. While both can help centralise analytics, drive insights, and support decision-making, they serve different purposes. Understanding when to use each solution can help businesses make the right choice based on their needs.
What is the difference between Microsoft Fabric and Power BI?
Although Microsoft Fabric and Power BI may appear similar, they are designed for different purposes.
Power BI is a business analytics tool that enables organisations to visualise data, share insights, and make informed decisions. It’s widely used for creating dashboards and reports that help teams understand performance and trends. If your primary need is data visualisation, self-service reporting, and dashboarding, Power BI is likely sufficient for your organisation.
Microsoft Fabric, on the other hand, is a unified data platform that brings together data engineering, data science, real-time analytics, and business intelligence. It’s designed for organisations that need to manage the entire data lifecycle, from ingestion and transformation to analysis and reporting, within one integrated environment. Power BI is one of the core workloads within Fabric, making it part of the platform rather than a separate service.
For businesses trying to decide which solution is best, it’s important to understand their individual needs. If your organisation primarily focuses on reporting and visualisation, Power BI may be the right fit. However, if you require a unified, enterprise-scale analytics platform that supports ingestion, transformation, real-time analytics, and machine learning, Microsoft Fabric could be the better choice.
Before diving deeper, let’s take a closer look at what each platform offers and how they fit within the Microsoft ecosystem.
Overview of Microsoft Fabric and Power BI
What is Power BI?
Power BI is a business intelligence tool that helps organisations turn data into actionable insights. It allows users to connect to various data sources, build interactive dashboards, and share reports across teams. Power BI is part of the Microsoft Power Platform and integrates seamlessly with other Microsoft services such as Excel, Azure, and Teams.
To explore how Power BI can benefit your organisation, take a look at our Business Benefits of Power BI or Examples of Power BI Dashboards.
What is Microsoft Fabric?
Microsoft Fabric is a modern data platform that unifies data across different roles and workloads. It combines services like Azure Data Factory, Synapse Analytics, and Power BI into a single experience. Built on Microsoft’s trusted cloud infrastructure, Fabric uses OneLake as its unified storage foundation, providing a single, secure environment for all organisational data.
Fabric is built for organisations that need to manage complex data pipelines, perform real-time analytics, and support machine learning initiatives. If you’d like to learn more about how Fabric could fit your data strategy, explore 10 key benefits of Microsoft Fabric for your organisation.
Microsoft Fabric vs Power BI: Similarities
Despite their differences, Microsoft Fabric and Power BI share key features:
- Microsoft Ecosystem Integration: Both solutions integrate seamlessly with Microsoft 365, Azure, and other tools, enabling a connected and efficient data environment.
- Cloud-Based Solutions: Both platforms are cloud-native, offering scalability, security, and accessibility for modern organisations.
- Data-Driven Decision Making: Whether through dashboards or advanced analytics, both tools empower organisations to make informed decisions based on data.
Microsoft Fabric vs Power BI: Key Differences
The main differences between Microsoft Fabric and Power BI lie in their scope and functionality:
- Scope and Functionality: Power BI focuses on data visualisation and reporting. Microsoft Fabric offers a broader analytics platform that includes data engineering, lakehouses, real-time analytics, and AI-powered insights. This makes Fabric more suited to organisations managing complex, large-scale, or regulated data environments.
- Target Audience: Power BI is aimed at business analysts and decision-makers. Microsoft Fabric is geared towards data engineers, scientists, and IT teams managing enterprise-scale data operations.
Examples of Microsoft Fabric and Power BI in action
- Power BI Example: A regional logistics company uses Power BI to consolidate data from multiple spreadsheets and tracking systems. By creating interactive dashboards, they now monitor delivery performance, identify bottlenecks, and share insights across departments; all without relying on manual reporting.
- Microsoft Fabric Example: A healthcare provider adopts Microsoft Fabric to unify patient data from various systems, enabling real-time analytics for care coordination and operational planning. With built-in governance and scalable data pipelines, the organisation supports both clinical and administrative teams from a single platform.
Cost comparison
- Power BI: Power BI offers flexible pricing, including a free version and affordable Pro and Premium tiers. It’s a cost-effective choice for small to medium sized organisations.
- Microsoft Fabric: Fabric pricing is based on compute, storage, and capacity units. While it may involve higher costs depending on usage and scale, its comprehensive capabilities make it a valuable investment for data-driven enterprises.
Choosing the right solution for your organisation
When deciding between Microsoft Fabric and Power BI, consider the following:
- Business Needs: If your organisation needs to visualise and report on data, Power BI is likely the best choice. If you require a full analytics platform with advanced data management and AI capabilities, Microsoft Fabric may be more suitable.
- Budget: Power BI is generally more affordable, but Fabric offers greater value for organisations with complex data requirements.
- Resources and Expertise: Power BI can be used by business users with minimal technical skills. Fabric may require more specialised expertise in data engineering, governance, and cloud architecture.
- Scalability: Microsoft Fabric is ideal for organisations anticipating growth in data volume and complexity, while Power BI is perfect for teams focused on insights and reporting.
Combining Microsoft Fabric and Power BI
Many organisations use both Microsoft Fabric and Power BI together. For example, Fabric can manage, transform, and store large datasets within OneLake, while Power BI provides an intuitive interface for visualising and sharing those insights. This integration enables end-to-end data solutions that support both technical and strategic goals.
Get in Touch
If you’re unsure which solution is right for your organisation or need expert guidance on implementing Microsoft Fabric or Power BI, our team at Pragmatiq is here to help. Reach out to us at info@pragmatiq.co.uk or call us on 01908 038110.
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