On-premises Data Gateway
- datasculptsinsight
- Jan 3, 2024
- 3 min read
Updated: Feb 11, 2024
Introduction
In the age of data-driven decision-making, tools like Power BI have become essential for businesses. They help in transforming raw data into insightful information. However, a common challenge for many organizations is accessing data stored in on-premises servers. This is where the concept of an "On-Premises Data Gateway" comes into play, especially in the context of Power BI.
What is an On-Premises Data Gateway?
In very simple terms, an On-Premises Data Gateway acts like a bridge that allows for the secure transfer of data between on-premises data and cloud-based services like Power BI, Power Apps, and more.
Think of it as a messenger who runs between your local data and the cloud, ensuring that two can talk to each other safely and swiftly.

Architecture of the On-Premises Data Gateway
The architecture of the On-Premises Data Gateway is designed to ensure secure and efficient communication between
on-premises data sources and cloud services. Here's a breakdown of its key components and how they interact:

Let’s see how it works
Cloud Services (Power BI, Power Apps, Power Automate, Fabric, Azure): These are the Microsoft cloud services that require access to on-premises data. They are the starting point for data queries.
Gateway Cloud Service: This service acts as a coordinator between the cloud services and the on-premises data gateway. It routes queries from the cloud services to the appropriate on-premises data gateway and sends the results back to the cloud services.
Azure Service Bus: This is a messaging system used by the gateway cloud service to communicate securely with the on-premises data gateway. It's the communication channel for data requests and results.
On-Premises Data Gateway: Installed within the local network of the organization, this gateway handles the encryption and decryption of data source credentials and establishes the connection to the on-premises data sources.
Data Sources: These are the actual storage places where the data resides. In the image, examples given include SQL Server, SQL Server Analysis Services, and other file sources like SharePoint. The on-premises data gateway sends queries to these data sources, and after collecting the necessary data, it sends the results back to the Gateway Cloud Service.
Real-life example:
Background: Imagine a Fashion brand that is operating both in-store as well as online. The company uses Power BI for its business intelligence and reporting needs. It has a mix of on-premise and cloud systems.
On-Premise: In-store sales data is stored in a secure on-premises SQL server database.
Cloud: The e-commerce part of the business is on Azure SQL database.
Challenge: Let’s assume you are a data analyst working for this company and you need to create a comprehensive report that requires data from both in-store and online parts of the business. Moving the in-store data to the cloud is not an option for various security reasons.
Solution: An On-premises gateway needs to be implemented for the online services to connect with the on-premise data.
Modes
A data gateway can function in two different modes:
Personal: Personal Mode is designed for individual use. It is best suited for scenarios where a single user needs to connect to on-premises data sources for their own reports and dashboards in Power BI.
Standard: Standard Mode is designed for enterprise use. It is ideal for organizations that need to allow multiple users to access on-premises data sources for Power BI, as well as for Power Apps, Power Automate, and Azure Logic Apps.
Conclusion
The architecture of the On-Premises Data Gateway is thoughtfully designed to balance the need for data security with the demand for seamless access to on-premises data in cloud-based applications like Power BI. By understanding this architecture, organizations can better plan and implement their data strategy, ensuring efficient and secure data utilization across their enterprise.
Further Assistance
For additional information and advanced techniques, please refer to the Power BI documentation.
We welcome your experiences and insights regarding data source management in Power BI. Share your thoughts in the comments section or reach out for more in-depth discussions!
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