What is Power BI?

A plain-English guide to Microsoft's business analytics platform: what it is, what it does and who it is for.

By Ihor Havrysh · Last reviewed May 2026

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Power BI is Microsoft's business analytics platform. It connects to the data your business already holds, such as spreadsheets, databases and online services, and turns it into interactive dashboards and reports. Anyone on the team can then read, explore and act on those reports, without waiting for a specialist to rebuild them.

What Power BI is for

Most businesses do not have a shortage of data. They have a shortage of clear answers. Sales figures sit in one system, costs in another and the monthly report is stitched together by hand in a spreadsheet that only one person fully understands.

Power BI exists to close that gap. You point it at your data sources, decide how the numbers should be presented, and Power BI produces dashboards that update on their own. Instead of rebuilding a report every month, you build it once, and everyone sees the latest version whenever they open it.

The three parts of Power BI

Microsoft's own Power BI documentation groups it into three connected parts:

  • Power BI Desktop: a free Windows application where reports and dashboards are built. This is where most of the hands-on work happens.
  • The Power BI Service: the cloud home of Power BI. Finished reports are published here so colleagues can view and interact with them in a web browser.
  • Power BI Mobile: apps for phones and tablets, so dashboards travel with the people who need them.

A typical workflow is straightforward: build in Desktop, publish to the Service and view anywhere. For a closer look at the first two, see Power BI Desktop vs Power BI Service. Power BI Desktop is free to use; publishing and sharing through the Service needs a paid per-user licence, set out on Microsoft's Power BI pricing page and explained in our Is Power BI free? entry.

How Power BI turns data into a dashboard

Behind every Power BI report are four steps:

  1. Connect and clean: Power BI links to your data and tidies it up using a built-in tool called Power Query.
  2. Model: related tables are joined together so the figures line up correctly.
  3. Calculate: custom measures, such as totals, percentages and year-on-year change, are written in a formula language called DAX.
  4. Visualise: charts, tables and maps are arranged on a canvas to tell the story.

You do not need all four on day one. A simple dashboard can be built in an afternoon. The modelling and DAX are where the real depth and skill lie.

Who uses Power BI, and is it worth learning?

Power BI is built for business users (analysts, managers, finance teams and operations staff), not for software developers. If you can work confidently with an Excel spreadsheet, you can learn Power BI.

It is also one of the most in-demand data skills in the UK job market, which makes it a strong addition to a CV as well as a practical tool for the day job. The honest picture: the basics are genuinely approachable, but becoming confident, especially with data modelling and DAX, takes structured practice. That is the gap good training closes.

Want to learn Power BI properly? Reading about Power BI is a useful start. Building with it confidently is a skill worth investing in. Our two-day, hands-on Power BI Masterclass takes you from a blank screen to working dashboards, with expert guidance at every step. If you are weighing up the options first, our Power BI training buyer's guide walks through what to look for in a UK course.

Frequently asked questions

Power BI Desktop, the Windows application where reports are built, is free to download and use. Sharing reports with colleagues through the Power BI Service needs a paid per-user licence, such as Power BI Pro. So you can learn and build for free, and you pay when you want to publish and collaborate.

No. Power BI is designed for business users, not programmers. You build reports by connecting to data and dragging fields onto a canvas, and you can go a long way without writing any code. More advanced work uses a formula language called DAX, but that is closer to writing Excel formulas than to traditional programming.

Not by default. Power BI is a separate Microsoft product with its own licensing, although it sits in the same ecosystem as Microsoft 365 and works closely with Excel. Some organisations add Power BI licences to their Microsoft agreements, but a standard Microsoft 365 subscription does not automatically include the paid Power BI features.

Excel is a spreadsheet, excellent for ad-hoc analysis and smaller datasets. Power BI is built for connecting to larger and more varied data, refreshing it automatically and sharing interactive dashboards with a wider audience. Many people use both: Excel to explore, Power BI to report and share.
Ihor Havrysh - Software Engineer at Red Eagle Tech

About the author

Ihor Havrysh

Software Engineer

Software Engineer at Red Eagle Tech with expertise in cybersecurity, Power BI, and modern software architecture. I specialise in building secure, scalable solutions and helping businesses navigate complex technical challenges with practical, actionable insights.

Read more about Ihor

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