Microsoft Fabric vs. Power BI: When to Use Each Tool

Quick Answer: Microsoft Fabric combines analytics, data engineering, and integration into a single platform. Power BI takes data and creates visualizations and business intelligence reports. Most organizations pair these tools: Power BI builds dashboards while Fabric manages the data processing behind them.
Most Microsoft users who work in data analytics know about Power BI, but Microsoft Fabric is newer to the scene. Discussions can quickly degenerate into a “Microsoft Fabric vs. Power BI” debate, but we’ll learn why this is probably the wrong way to think about these two products.
If you are wondering if you should pick one over the other, you might be surprised to find that that isn’t the right frame of reference. The truth is that these tools complement each other with different capabilities.
Power BI (Part of Microsoft’s Power Platform) shows you what your data means through charts and graphs, while Fabric does the heavy data lifting in the background. Let’s answer some of the questions that get asked most often about when each tool should be used.
What is Microsoft Fabric, and When Should You Use It?
Microsoft Fabric brings together data tools that used to be spread across different Azure services like Azure Data Factory, Azure Synapse Analytics, and Power BI. It's built to make data handling simpler, but there are some limitations you should know about before jumping in for yourself.
Microsoft Fabric vs. Power BI: The Good Parts
Microsoft Fabric is really useful when you're juggling data from everywhere and anywhere. It lets you combine data from SAP, Jira, and all those other systems that have different data and structures. Fabric handles all the messy data cleanup work in the background before your reports are generated, which saves a lot of time. Another advantage of using Fabric is that you can use a single application to handle your data instead of relying on third-party tools.
Real World Performance
It’s not all good news, though. Companies using Fabric have found some interesting quirks worth noting:
Data sets bigger than 100GB can slow things down
Some basic features aren't available yet since it's still new
Really big data jobs (we're talking terabytes) might need a different solution
You pay based on what you use, which sounds great until usage spikes lead to a surprise bill
A Word About Storage
Storing data in Fabric costs less than using Dataverse, making it attractive if you're watching your budget. But like anything cloud-based, keep an eye on those usage meters–costs can creep up if you're not careful.
When Fabric Fits Best
We know what Fabric does, but how would you know if it was the right solution for your analytics workflows? Fabric is for you if you need to:
Combine data from different systems into one place
Run complex calculations before showing results
Build data pipelines that feed into Power BI
Set up automated data processing jobs
Best Ways to Use Fabric
Fabric makes sense for certain setups. Here's where it tends to work best:
New data projects where you can grow alongside the platform
Data jobs under 100GB (anything bigger and you'll start seeing some slowdown)
Teams already running Microsoft tools
Projects needing both storage and data processing in one place
Companies using Fabric can use it to handle all their customer data. This could be everything from sales info to help desk tickets. But there's a catch. You’ll have to plan carefully to keep those bigger data sets from bogging down the system.
Quick Tips for Success
If you want the best chance of success with Fabric, you’ll need to consider specific use cases and not throw it at every task. Keep a close eye on your data volumes and make sure your team knows their Microsoft tools inside and out.
Always leave yourself room to tweak performance, and keep an eye on your dataset size. When those massive datasets grow beyond the 100GB range, you'll want that flexibility to scale without having to tear everything down and start over.
What is Power BI, and How Does It Fit into the Microsoft Ecosystem?
Power BI has made a name for itself by making data easy to understand. Microsoft Fabric is still relatively new, but Power BI is more established and more mature in the market. Whether you are a tiny startup or a big enterprise, everyone seems to find a use for it.
What Makes Power BI Special
It might not have many of the advanced data options that Fabric has, but Power BI does a few things really well:
Anyone can build good-looking reports, even without coding skills
Works perfectly with Excel, SharePoint, and Teams (all Microsoft products)
Helps teams dig into their data quickly to find answers
Handles most business reports without breaking a sweat as long as you stay under 100GB
Real-Life Uses for Power BI
Here's what teams use it for every day:
Monthly money tracking and important stats
Finding out what customers are up to
Building dashboards that show how departments are doing
Making fancy reports that bosses actually understand
The Power BI Sweet Spot
Power BI works best when you:
Need to share data insights across your company
Want non-tech people to create their own reports
Have data spread across Microsoft tools
Need quick answers from your data
A Note About Performance
Power BI loves smaller datasets; anything under 100GB is ideal. Once you start pushing past that, you might need to consider breaking things up or looking at other options.
Watch Out for These Limits
Power BI is great, but it's not magic. Keep these points in mind:
Big data needs bigger licenses and sometimes extra tools
Some of the advanced features need tech skills to work properly
Heavy data cleanup might need Fabric or something similar upstream
Power BI does one thing really well: it shows data in ways that make sense to people who need quick answers without diving into code.
How Microsoft Fabric and Power BI Work Together
When you adjust your workflows correctly, you can set up your system so that Fabric gets your data ready while Power BI makes it look pretty.
The Data's Journey
Here's what happens to your data:
Fabric grabs raw data from everywhere (SAP, Jira, databases)
It cleans up the mess and gets everything organized
Power BI taps into this clean data for reports
Your team gets neat dashboards through Power BI
A Real World Example
Here's how an HR team could make this setup work:
They need to mix data from:
Their hiring system
Payroll records
Employee surveys
Fabric does the hard work:
Pulls all that data together
Keeps it fresh with updates
Makes sure nothing gets mixed up
Power BI steps in to show:
Hiring patterns
Pay analysis
How happy employees are
The HR team loves it because they can get all their answers without worrying about what's happening behind the scenes.
Tips From Teams Using Both Tools
People who've set up Fabric and Power BI have learned some valuable lessons:
Start small and build up slowly
Watch how things run as your data grows
Build reports that focus on what matters most
Pay attention to when your data updates - it affects how fast reports load
Microsoft Fabric and Power BI Cost Considerations
The price tags on Power BI and Fabric look quite different. Since they're both Microsoft tools, you might think they are billed in the same way, but they aren’t. Here's what you need to know about each one.
Power BI Pricing
Power BI keeps things simple:
Power BI Pro runs $10 monthly per user
Power BI Premium costs more but gives you dedicated resources
Your bill stays pretty steady month to month
Bigger teams might need Premium features, which cost extra
What Fabric Costs
Fabric pricing needs more attention because you pay for what you use:
More data means higher storage costs
Heavy data processing costs extra
Moving data between services adds up
Big data sets (over 100GB) can get pricey
Performance vs. Price
You'll need to balance a few things:
Data over 100GB starts to slow down
Better performance means spending more
Live data updates cost extra
Test environments add to your bill
Managing Your Spending
Keep your costs under control by:
Starting with a small project
Watching your usage stats
Clearing out old data
Using cheaper storage for old files
Moving ancient data to archives
The Big Data Reality
When you're working with massive data:
The 100GB mark is where things get tricky
Terabyte-sized jobs might not work well
Private networks can run slow if not optimized for data pipelines
Bigger queries tend to time out if they are not optimized properly
What This Means for You
Planning to use Fabric? Remember:
Test small before going big
Have a Plan B for huge data sets
Expect some bumps in the road because it's still relatively new
Build a skilled team - you'll need them
Fabric is getting better all the time, but it's not perfect yet. If you're running big operations, take a good look at whether it fits your needs right now.
The Big Question: Is Fabric Really Enterprise-Ready?
Microsoft has big plans for this platform, but early adopters are discovering some interesting challenges when pushing it to its limits. Here's what you need to know: Fabric starts hitting some serious performance walls once you cross certain thresholds.
The breaking points we're seeing:
Performance drops noticeably around the 100GB mark
Query timeouts become a regular headache with larger datasets
Terabyte-level data needs to be split into smaller jobs
Network performance (especially those private endpoints) can become a bottleneck
The Reality Check
Fabric isn't a bad tool. But like any technology, it has its sweet spots and its pain points. To get the most out of it, you’ll need to learn where those boundaries are:
Processing Power: Fabric can handle moderate workloads well, but it's not quite ready for massive enterprise data processing
Cost vs Performance: Scaling up means significantly higher costs, and you might not get the performance boost you'd expect
Technical Overhead: You'll need a solid technical team to optimize and maintain larger implementations
Making It Work for Your Enterprise
Success with Fabric at scale requires some smart strategizing. Here's what works best:
Start small and scale gradually
Monitor performance metrics constantly
Keep your data architecture clean and efficient
Have backup plans for handling larger workloads
Bigger isn't always better with enterprise data. Smarter planning and optimizing is where you’ll find the best value with this product
Microsoft Fabric vs. Power BI: Which Tool to Use and When
Below are some examples of how to use either tool on its own or together:
Power BI Best Case Scenarios
Power BI's your friend when you need:
Quick dashboards that anyone can read
Simple data pulls from Excel or SharePoint
Giving teams direct access to their numbers
Easy-to-budget monthly costs
When Fabric Fits
Fabric jumps in when you're:
Mixing data from lots of places
Doing heavy data cleanup
Processing live data
Looking to trim down your tool count
Mixing It Up
Combining them both:
Fabric handles the heavy data work
Power BI makes pretty charts
Start with Power BI, and add Fabric later
Keep watching as both tools grow
Start somewhere that works for you and change it up as you need to.
| Power BI | Fabric |
Best For | Creating dashboards, visualizing data, sharing insights | Heavy data processing, combining multiple data sources, real-time analytics |
Data Limits | Works smoothly up to 100GB | Can handle larger datasets but watch performance over 100GB |
Pricing Model | Fixed monthly cost per user ($10 for Pro) | Pay for what you use (can get pricey with heavy processing) |
Learning Curve | Easier to start, especially if you know Excel | Steeper curve, needs more technical expertise |
Team Skills Needed | Basic data analysis, report building | Data engineering, integration experience |
Learning Both Microsoft Fabric and Power BI Gives You a Competitive Edge
Microsoft is putting all its chips on Power BI and Fabric. Getting good at both can open some pretty sweet job opportunities. Power BI skills are already sought after in the job market. If you can add some Fabric knowledge, then your opportunities will grow even more.
Here's why:
Most companies start with Power BI and then grow into Fabric
Teams need people who are good at data crunching and making pretty charts
Knowing both helps you build better solutions
You'll spot the right tool for each job faster
Want to level up? Here's where to start:
Master Power BI first - it's been around longer and more places use it
Learn how Fabric plugs into Power BI
Practice with real problems, not just tutorials
Watch what Microsoft's launching next
Conclusion
Power BI and Fabric aren't rivals; they're partners. Power BI turns complex data into charts that make sense. Fabric does the hard work behind the scenes when you need more data-intensive operations.
The choice between Microsoft Fabric and Power BI isn't really a choice at all – they're designed to work as partners in your data strategy. Learning about both of these products can help you develop a career in data analytics or elevate your existing reporting skills.
Want to try a CBT Nuggets course? Get a free 7-day trial.
delivered to your inbox.
By submitting this form you agree to receive marketing emails from CBT Nuggets and that you have read, understood and are able to consent to our privacy policy.