Power BI - Questions & Answers | Business Analytics & Intelligence | Processes & Tools | Part 2
Question: Describe the different layers involved in Power BI architecture.
Suggested Answer:
The Power BI architecture consists of multiple layers that work together to transform raw data into actionable insights. A breakdown of the key layers is given below:
1. Data Sources Layer
Purpose: Contains raw data from various sources.
Examples:
- Databases (SQL Server, Oracle, MySQL)
- Files (Excel, CSV, JSON)
- Web APIs & SaaS apps (Salesforce, Google Analytics)
- Big Data (Azure Synapse, Hadoop)
- Streaming data (IoT, Kafka)
2. Data Transformation Layer (Power Query)
Purpose: Cleans, transforms, and prepares data for analysis.
Key Tasks:
- Data extraction (connectors)
- Filtering, merging, pivoting
- Handling missing values
- Query folding (pushing transformations back to the source)
Tools:
- Power Query Editor in Power BI Desktop
3. Data Modeling Layer
Purpose: Structures data for efficient analysis.
Key Components:
- Star Schema: Fact tables (metrics) linked to dimension tables (categories)
- Relationships: Define joins between tables (1:1, 1:many)
- Calculated Columns & Tables: DAX-based logic
- Measures: Dynamic aggregations (e.g., SUMX, CALCULATE)
- Optimizations: Aggregations, partitioning, and data type tuning
4. Data Storage Layer
Purpose: Stores processed data for quick access.
Options:
- Import Mode: Data loaded into Power BI’s in-memory engine (VertiPaq)
- DirectQuery: Live queries to the source (no local storage)
- Composite Model: Hybrid of Import and DirectQuery
- Power BI Datasets: Reusable models in the Power BI Service
5. Visualization Layer
Purpose: Presents data through interactive reports/dashboards.
Components:
- Visuals: Charts, tables, maps, custom visuals
- Filters/Slicers: User-driven data segmentation
- Bookmarks/Drill-through: Navigation and context switching
- Tools: Power BI Desktop (authoring) or Service (publishing)
6. Analytics Layer
Purpose: Advanced analysis (AI, forecasting, etc.).
Features:
- Quick Measures: Prebuilt DAX calculations
- AI Insights: Anomaly detection, Q&A natural language
- Python/R Integration: Custom machine learning scripts
7. Power BI Service (Cloud) Layer
Purpose: Hosts and shares reports securely.
Components:
- Workspaces: Collaboration environments
- Gateways: On-premises data access (via Data Gateway)
- Apps: Published report bundles for end-users
- Power BI Premium: Dedicated cloud capacity for large datasets
8. Security & Governance Layer
Purpose: Controls access and monitors usage.
Features:
- Row-Level Security (RLS): Filters data by user roles
- Azure AD Integration: Authentication & SSO
- Audit Logs: Track report usage in the Power BI Admin Portal
- Data Sensitivity Labels: GDPR/Compliance tagging
9. Integration Layer
Purpose: Connects Power BI with other tools.
Examples:
- Power Automate: Trigger workflows from reports
- Azure Synapse: Big data processing
- SharePoint/Teams: Embed reports in collaboration tools
10. Consumption Layer
Purpose: End-user interaction with reports.
Access Methods:
- Power BI Mobile App: On-the-go access
- Embedded Analytics: Reports in custom apps (via APIs)
- Subscriptions: Automated email reports
Visual Representation:
Data Sources → Power Query → Data Model → Storage → Visualization → Service → Security → Integration → Consumption
⚠ Key Points to Remember ⚠
- Each layer serves a distinct role in the data pipeline.
- Optimizing each layer (e.g., query folding in transformations, star schema in modeling) improves performance.
- Power BI’s flexibility supports both self-service and enterprise-scale analytics.

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