This document outlines two viable options for sharing Power BI content with external users when you have a Fabric capacity below F64. External users will only have Viewer access and will not build their own reports.

Option 1 — Invite Clients as Entra ID (Azure AD) B2B Guest Users

• How it works:
• – Invite external users as Guests in your tenant.
• – Share the Power BI App or report with them.
• – RLS applies based on their identity.
• Licensing under F2:
• – Guests must have a Power BI Pro or PPU license to view content in the Power BI Service.
• – You can let them Bring Their Own License (BYOL) or assign a Pro/PPU license in your tenant.
• Pros:
• – Native Power BI experience; works with Apps and RLS; no custom development.
• Cons:
• – Requires license for each external viewer; requires guest account management.

Option 2 — Power BI Embedded (App Owns Data)

• How it works:
• – Embed reports in a secure web portal or app.
• – Users do not sign in to Power BI; your app authenticates them and generates an embed token with Effective Identity for RLS.
• Licensing under F2:
• – External users need no Power BI license at all.
• – You pay for Fabric capacity (F2 covers this scenario).
• Pros:
• – No license friction for external users; full control over UX and branding; scales well for many clients.
• Cons:
• – Requires custom app development; you manage authentication and token generation.

Important Note

Embedding Power BI reports in SharePoint Online using the Power BI web part does NOT support Azure B2B guest users. Guests will see a loading spinner but the report will not render. Therefore, SharePoint embedding is not a viable option for external clients.

Licensing Summary