As Microsoft’s data ecosystem continues to evolve, Excel users are hearing more about Fabric, Power BI, and Dataverse. Many are wondering how all these elements fit together. Excel has long been a cornerstone of data analysis and reporting, but as organizations move toward cloud-first, AI-driven architectures, understanding this broader ecosystem is essential.
This post explains how Fabric, Power BI, and Dataverse relate to one another, what roles they play in Microsoft’s data architecture and why this matters for Excel users.
Fabric, OneLake and Microsoft’s data architecture
Microsoft Fabric is a unified data platform that brings together storage, analytics, governance, and AI under one umbrella. You can think of it as the foundation upon which modern Microsoft data tools are built.
At its core lies OneLake, a single, organization-wide data lake that serves as the “OneDrive for data.” It’s designed to eliminate data silos and ensure that every analytics tool, from Excel to Power BI to SQL, works with the same, trusted datasets.
Fabric unifies capabilities from technologies like Azure Data Factory, Synapse, and Power BI into one environment. For Excel users, this means that the workbooks you create, the data models you connect to, and the reports you share can all be part of a broader, governed ecosystem rather than isolated files. In other words, you can spend less time managing copies of data and more time analyzing it.
Power BI as a layer of Fabric
Power BI is no longer just a visualization tool. It’s an essential part of Fabric. The relationship between Power BI and Fabric is best described as semantic + platform:
- Fabric provides the infrastructure: storage (OneLake), compute, and governance.
- Power BI provides the semantic model: how data is organized, related, and presented.
In practice, Power BI runs on Fabric. When you create a Power BI dataset, it’s stored in OneLake. When you build a report, it can connect to the same Fabric-based data model that other tools (including Excel) use.
Example
A sales team might store raw transaction data in Fabric’s OneLake. Power BI builds a semantic model on top of that data, defining measures such as revenue, profit margin, and year-over-year growth. Excel users can then connect directly to that semantic model, creating PivotTables or custom reports without duplicating data or logic.
For Excel users, this means instead of relying on manually updated spreadsheets or one-off exports, you can work directly with governed, version-controlled data that’s consistent across the organization.
Dataverse and the Power Platform: The operational counterpart
If Fabric is the analytical backbone, Dataverse is the operational brain of the Power Platform.
Microsoft Dataverse stores structured, relational business data used by Power Apps, Power Automate, Power Pages, and Copilot Studio. Unlike Fabric, which is optimized for analytics and large-scale storage, Dataverse is optimized for transactional operations and business workflows.
While Fabric and Dataverse serve different purposes, Microsoft is steadily connecting them. For example, Dataverse data can be shared into Fabric via OneLake shortcuts, making it available for deeper analysis in Power BI or Excel.
Example
A company’s HR team might use a Power App built on Dataverse to track employee training. That same data can be shared to Fabric, where analysts use Excel or Power BI to measure completion rates, visualize trends, and correlate training with performance metrics.
For Excel users, this means that the data you analyze is directly tied to the systems running the business. No more CSV exports or outdated files. Your reports can be live reflections of real operational data.
How Excel fits into this landscape
Excel sits comfortably across both worlds:
- Excel can connect to Fabric datasets or Power BI semantic models for governed reporting.
- Excel can update or reference Dataverse data through Power Automate or the Dataverse connector.
- Tools like Power Query, Python, and Copilot in Excel can leverage both Fabric and Power Platform data sources to summarize, generate, or explain insights, all within the familiar Excel interface.
Example:
An analyst could open Excel, connect to a Fabric dataset of company financials, and use Copilot to summarize quarterly trends and identify outliers. Behind the scenes, that analysis might draw on data stored in OneLake, modeled in Power BI, and enriched through a Power Automate flow from Dataverse.
Comparing the core components
To put all of this into perspective, it helps to compare the key layers of the Microsoft data ecosystem and how Excel interacts with each. Understanding these roles clarifies where Excel fits and why it matters.
| Platform | Primary Function | Optimized For | Excel’s Role |
|---|---|---|---|
| Fabric | Unified analytics platform (OneLake storage) | Analytical workloads, AI, reporting | Connect to shared datasets and create governed reports |
| Power BI | Visualization and semantic modeling layer | Business intelligence and dashboards | Analyze and visualize data models from Fabric |
| Dataverse | Operational data platform | Apps, workflows, and transactional data | Serve as source/target for automated workflows |
| Power Platform | Integration and automation layer | Connecting systems and data | Trigger or respond to actions using Excel data |
When you understand this stack, you can start building workflows that make Excel a strategic player in your data operations rather than just a spreadsheet tool.
Common workflows for Excel users
Understanding these systems conceptually is one thing, seeing them in action is another. The following examples show how Excel can act as a bridge between Fabric, Power BI, and Dataverse in real business workflows.
| Scenario | What’s Happening | Tools Involved |
|---|---|---|
| Building a shared dataset | Data loaded to Fabric and modeled in Power BI; Excel connects directly for analysis | Fabric, Power BI, Excel |
| Automating data refresh | Power Automate flow triggers Fabric dataset refresh when Excel data updates | Power Automate, Fabric, Excel |
| Integrating operational data | Dataverse stores CRM records that sync into Fabric for analysis | Dataverse, Fabric, Power BI |
| Creating an AI-assisted report | Excel Copilot analyzes a Fabric dataset and generates narrative insights | Fabric, Copilot for Excel |
These use cases show how Excel users can extend their reach into automation, AI, and advanced analytics, without leaving Excel itself.
Why this matters
Many Copilot and AI-driven capabilities across Fabric the Power Platform rely on access to data in Fabric or Dataverse. Understanding how these systems interact allows Excel users to:
- Communicate effectively with IT and data teams about data sources and permissions.
- Design smarter workflows that avoid redundant data silos.
- Unlock Copilot capabilities that depend on connected, governed data.
By understanding how data moves through Fabric and the Power Platform, you’ll be well positioned to future-proof your Excel skills and boost your value as an analyst. Even if you don’t yet have the licenses or IT permissions to use every new workflow these tools enable, you’ll still stay aligned with modern trends in data architecture and AI-driven analytics.
Conclusion
Excel remains a critical front door to Microsoft’s data strategy. Its role is evolving from a standalone spreadsheet tool to a gateway into a connected data ecosystem powered by Fabric, Power BI, and Dataverse.
By understanding these relationships, Excel users can modernize their analysis, automate their reporting, and collaborate with IT and data teams on equal footing. In short: you don’t need to stop being an Excel expert. You just need to expand your world.
For more details, explore Microsoft’s documentation for Fabric, Power BI, and Power Platform.
If you’d like some help thinking through how all these pieces fit together and how to future-proof your data strategy, workflows, and talent you can book a free discovery call below: