Microsoft Fabric - Simply Explained
Data has become one of every organization's most valuable assets—but for many businesses, it's scattered across databases, cloud platforms, business applications, and analytics tools. Microsoft Fabric was created to solve this fragmentation by bringing every stage of the data lifecycle into a single, unified platform. In this episode of Microsoft Knowledge Nuggets, we explain Microsoft Fabric in plain English, exploring how it combines data engineering, analytics, business intelligence, artificial intelligence, and governance into one modern Software-as-a-Service platform.
WHY MICROSOFT CREATED FABRIC
For decades, organizations managed separate tools for data storage, ETL pipelines, analytics, reporting, machine learning, and business intelligence. Every system required its own infrastructure, administration, security model, and data movement. As data was copied between platforms, businesses created multiple versions of the truth while spending more time moving data than analyzing it. Microsoft Fabric eliminates these silos by providing a single platform where data is stored once and used everywhere.
UNDERSTANDING ONELAKE: THE FOUNDATION OF MICROSOFT FABRIC
At the heart of Microsoft Fabric is OneLake, a single enterprise-wide data lake that acts as one centralized source of truth for the entire organization. Similar to how OneDrive stores personal files, OneLake stores business data in open Delta Parquet formats while allowing every Fabric workload to access the same information without duplication. Features such as shortcuts even allow organizations to reference data stored in AWS, Google Cloud, or on-premises environments without physically moving it, simplifying hybrid and multi-cloud architectures.
LAKEHOUSES, WAREHOUSES, AND DATA ENGINEERING
Microsoft Fabric supports multiple ways of working with data depending on your role. Data engineers can build scalable pipelines inside Lakehouses using Spark, Python, notebooks, and Delta tables. SQL professionals can work inside fully managed Warehouses that provide familiar T-SQL experiences while accessing the exact same data stored in OneLake. Since both workloads share a common storage layer, organizations avoid unnecessary copies while enabling collaboration between engineering, analytics, and business intelligence teams.
DATA FACTORY, REAL-TIME ANALYTICS, AND ARTIFICIAL INTELLIGENCE
Fabric includes Microsoft Data Factory with hundreds of built-in connectors, enabling organizations to ingest data from virtually any source. Dataflows Gen2 simplify transformation using Power Query, while Mirroring and OneLake Shortcuts reduce the need for complex ETL pipelines. Fabric also supports real-time analytics through Eventhouses and Kusto Query Language (KQL), allowing organizations to process streaming IoT, telemetry, and operational data in near real time. Built-in AI capabilities and Microsoft Copilot further accelerate report creation, SQL generation, pipeline development, and machine learning by allowing users to interact with their data using natural language.
POWER BI, GOVERNANCE, AND ENTERPRISE DATA MANAGEMENT
Power BI is deeply integrated into Microsoft Fabric through Direct Lake mode, enabling reports to query OneLake directly without importing or duplicating data. Semantic models, web-based development, Microsoft Purview governance, sensitivity labels, data loss prevention policies, and domain-based administration help organizations maintain strong security while empowering business users with trusted, governed analytics. Fabric's unified governance model ensures data remains protected throughout its entire lifecycle while simplifying compliance and enterprise data management.
WHY MICROSOFT FABRIC MATTERS
Microsoft Fabric isn't simply another analytics product—it represents Microsoft's vision for a unified data platform where storage, engineering, analytics, AI, governance, and business intelligence work together seamlessly. By eliminating data silos, reducing infrastructure complexity, and enabling organizations to store data once while analyzing it everywhere, Fabric helps businesses accelerate decision-making, improve collaboration, and unlock greater value from their enterprise data.
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Welcome to another episode.
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Today's topic is one you've probably heard
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in meetings or tech articles.
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Microsoft fabric, but if you're like most people,
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you're not entirely sure what it actually is.
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Is it just another Microsoft product,
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a rebrand of something old,
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or is it something completely different?
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Let me give you the short answer.
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Microsoft fabric is not just another product.
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It's a complete data platform,
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one place where you can do all your data work,
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storage, transformation, analytics, and reporting,
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all in one place.
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By the end of this episode,
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you'll understand what fabric is, why Microsoft built it,
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and how the main pieces fit together.
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Grab your coffee and let's dive in.
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The old way, why data was broken?
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To understand why fabric exists,
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you need to understand the problem it solves.
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20 years ago, if you were running a company,
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you'd buy a server for storing data,
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a separate tool for running reports,
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and yet another product for real-time analysis.
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Before you know it, you've got five different systems
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each with its own login, its own way of working,
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and its own team managing it.
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For a long time, data lived in silos, sales data set in one system,
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customer data in another,
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and financial data, somewhere else entirely.
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If you wanted to ask a question
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that crossed those systems,
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like which customers are buying the most profitable products,
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you had to move data around.
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Export it from one system, transform it, load it into another,
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then do it again when the data changed.
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More time was spent moving data between systems,
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than actually analyzing it.
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Data integration became a full-time job for entire teams.
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The worst part was that every time you moved data,
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you created another copy, another version of the truth,
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and pretty soon nobody knew which copy was the right one.
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Microsoft looked at this fragmentation
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and asked the simple question,
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"What if all these services work together?
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"What if instead of stitching together separate products,
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"you had one platform that did everything?"
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That question is what led to Microsoft fabric?
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What Microsoft fabric actually is?
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So what is fabric? Here's the simplest definition.
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Microsoft fabric is a unified data and analytics platform.
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One place for all your data work,
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think of it like a modern office building.
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Each tool like Power BI or Azure Synapse
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is a room inside that building.
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They have their own purpose, furniture, and tools,
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but they're all part of the same structure.
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You don't need to walk outside to get from one room to another.
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They're connected. That's what fabric does.
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It brings together data engineering,
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data integration, data warehousing,
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real-time analytics, and business intelligence,
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all in one platform.
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Everything runs on a single SaaS platform,
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which means no separate infrastructure to manage,
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no servers to provision on networking to configure.
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Microsoft handles all of that for you.
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Since its launch in 2023,
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fabric has become the fastest growing data product
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in Microsoft's history.
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Today, over 25,000 customers use it,
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including 80% of the Fortune 500.
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That's a lot of adoption in a very short time.
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The key difference is this.
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In the old world, you bought separate products
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and tried to make them talk to each other.
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With fabric, you don't stitch together different services anymore.
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It's one experience, one login, one way of working,
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and that changes everything.
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One lake, the foundation.
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Now let's talk about the foundation
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that makes all of this work.
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At the heart of fabric is something called one lake.
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The easiest way to think about one lake
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is like one drive for your data.
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You know how one drive gives you one place
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to store all your personal files
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and every app on your computer can access those files.
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One lake does the same thing,
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but for your organization's data.
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Here's what makes it powerful.
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Every fabric workload,
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whether it's a lake house, a warehouse,
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or a real-time analytics job,
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automatically stores its data in one lake.
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You don't have to manually copy anything
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or configure connections.
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It just happens.
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And there's only one one lake per tenant,
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one single source of truth for your entire organization.
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Now you might be thinking,
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what if I want to switch platforms later?
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Am I locked in?
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The answer is no.
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One lake stores data in open formats like Delta Parque,
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an industry standard format used by Databricks
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and Apache Spark.
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You're never locked into Microsoft.
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If you want to move your data somewhere else,
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you can.
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It's your data.
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But here's where one lake gets really interesting.
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Shortcuts.
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A shortcut is a virtual pointer to data
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that lives somewhere else.
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You can create a shortcut to data stored in AWS, S3,
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Google Cloud, or even on premises storage.
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And it shows up in one lake as if it was stored there.
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No data movement required, no duplication.
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You just point to it and it appears.
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One lake is built on top of Azure Data Lake Storage.
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Microsoft's enterprise-grade cloud storage.
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But you don't manage that infrastructure
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as it's all handled as a SaaS service.
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You don't provision servers or configure networking.
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You just use it.
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What does this mean for you?
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It means you can have data from multiple sources,
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cloud storage, on-premises databases,
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third-party platforms, all appear in one place
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without duplication.
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And the real power, any data written to one lake
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can be used by any fabric workload immediately.
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You write it once and every tool in fabric can see it.
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That's the magic of one lake.
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Lake houses, the data engineering hub.
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So you've got your data in one lake.
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Now you need to work with it.
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That's where the lake house comes in.
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Here's the simplest definition.
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A lake house is a data store that combines
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the flexibility of a data lake with the structure of a database.
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In a traditional data lake, you can store anything
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like the raw CSV files, JSON documents, images, video files,
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but it's messy with no structure or schema.
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So you can't query it easily.
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In a traditional database, everything is structured and queryable.
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But you can only store certain types of data.
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A lake house gives you both.
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You can keep raw files like CSV, JSON, or even images
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in a lake house.
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And you can also store structured tables
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that you can query with SQL.
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Both live in the same place.
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Those tables use Delta Park A format,
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the same open fast format used by Databricks
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and other major platforms designed
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to handle massive amounts of data.
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Lake houses support multiple tools.
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You can use Spark for large-scale data processing.
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You can use Python for machine learning.
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You can use SQL for simple queries.
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Whatever tool you prefer, the lake house
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can handle it.
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Think of a lake house as your workspace
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for building data pipelines.
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You bring raw data in, transform it, clean it,
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and prepared for analysis.
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You can run machine learning models on it.
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You can create training datasets all in one place.
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For data engineers who prefer a code-friendly environment,
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lake houses support notebooks.
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These are interactive documents where you write code,
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see results, and document your work,
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like a lab notebook for data.
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You can write Spark code in one cell,
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see the output in the next, and explain what you did
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in the cell after that.
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The lake house is the entry point
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for most data engineers working in fabric.
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It's where the heavy lifting happens.
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And because it stores everything in one lake,
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any data you put in a lake house is immediately available
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to every other fabric workload in the warehouses,
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the SQL Analytics engine.
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Now, if the lake house is the data engineering hub,
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think of the warehouse as the SQL Analytics engine,
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built for a different kind of user.
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A warehouse in fabric is a fully managed
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SQL Analytics database.
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If you're a database administrator or a SQL developer,
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this is where you'll feel at home.
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You can write T-Sycle queries.
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You can create views, stored procedures, and security policies.
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It looks and feels like a traditional data warehouse,
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but here's what makes it different.
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Unlike a traditional data warehouse,
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fabrics warehouse stores data directly in one lake.
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There's no separate storage layer,
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no extra infrastructure to manage.
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The data lives in one lake,
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and the warehouse is just the interface you use to query it.
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This matters because the warehouse and the lake house
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share the same data, so you're not duplicating anything.
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If a data engineer loads data into a lake house,
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a SQL developer can query it from a warehouse immediately,
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no copying, no moving, it's the same data accessed
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through different tools.
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The warehouse is built for large-scale analytics.
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Under the hood, it uses massive parallel processing
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to handle huge data sets.
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And Microsoft has been investing heavily in performance.
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In the last six months alone,
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performance has improved by 36%.
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That's a lot of improvement in a short time.
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If you're migrating from another platform,
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fabric has a migration assistant
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that helps you move from snowflake or synapse.
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It analyzes your existing setup
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and guides you through the process.
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The goal is to make migration as painless as possible.
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So what's the difference between a lake house and a warehouse?
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It comes down to the interface.
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We're houses are SQL first.
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They're built for people who think in terms of tables,
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queries and stored procedures.
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Lake houses are developer first.
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They're built for people who want to use Spark, Python,
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and notebooks.
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But underneath, they both store data in one lake.
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There are two ways of working with the same data.
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Getting data in, data factory, mirroring, and shortcuts.
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So you've got one lake for storage,
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lake houses for transformation and warehouses for querying.
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But how does the data actually get in?
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That's where data factory steps in.
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Data factory is Fabrics built in data integration service.
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And it gives you over 200 connectors
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to pull data from databases, cloud storage, SAS apps, and more.
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It's the most used data integration tool in the world
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and for good reason.
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Within data factory, you get data flows gen 2,
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which gives you a no-code way to transform data
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using power query.
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If you've ever used power query in Excel or Power BI,
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you already know the drill.
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You click through a visual interface
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to clean reshape and combine data, no coding required,
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and it's enterprise-grade, scalable to handle massive data
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sets.
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Over 22 billion orchestrations run on data factory every month,
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which means billions of data movements happen automatically,
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making it a serious piece of infrastructure.
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But there's an even simpler way to get data into one lake, mirroring.
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Mirroring copies data from external databases
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like Azure, School, Oracle, or Google BigQuery
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into one lake in near real time.
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And here's the best part.
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It's free, included in the service with no extra cost.
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You just point to your source database
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and Fabric handles the rest.
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Then there are shortcuts, which we touched on earlier,
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but they deserve more attention.
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Shortcuts are virtual pointers to data stored elsewhere,
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requiring no data movement.
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You create a shortcut to an AWS tree bucket,
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and it shows up in one lake as if it was stored there,
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while the data stays where it is.
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You're just pointing to it.
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And now shortcuts can do more than just point.
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Shortcut transforms let you apply AI-powered transformations
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on the fly.
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You can run sentiment analysis on text data, translate content,
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or detect personally identifiable information
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all without moving the data or building a pipeline.
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The transformation happens as you access it.
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The goal of all these tools is simple.
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Bring all your data into one lake without building complex
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pipelines, whether you use data factory for traditional ETL,
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mirroring for near real time replication
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or shortcuts for virtual access, the result is the same.
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Your data ends up in one lake ready for any Fabric workload.
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Real-time intelligence databases in AI.
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So far, we've talked about moving data and storing it,
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but what about data that never stops moving?
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Streaming data from IoT sensors, website click streams,
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telemetry from devices, that's where real-time intelligence
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comes in.
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Fabric handles streaming data through something called
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an event house, which stores and queries
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high volume time series data using KQL,
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the custochery language.
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It's the same engine that powers Azure Data Explorer
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built for speed, so you can ingest millions of events per second
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and query them in milliseconds.
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This matters.
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And here's why.
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46% of fabric customers already use real-time intelligence.
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That's nearly half.
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The use cases are everywhere.
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A logistics company tracking delivery trucks,
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a retailer monitoring in store for traffic,
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a manufacturer watching sensor data from factory equipment,
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all happening in real time.
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But fabric isn't just about analytics.
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It also includes operational databases
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like a SQL database for relational data
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and Cosmos DB for no-school workloads.
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These are the same databases you'd use to run your applications.
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And because they're built into Fabric,
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they automatically store their data in one lake.
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No extra pipelines, no manual copying,
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your transactional data and analytical data live in the same place.
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Now let's talk about AI because this is where fabric
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gets really interesting.
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AI integration runs deep across the platform
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and you get pre-built models for text analysis,
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translation and sentiment analysis.
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You can use them directly in your data flows
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without writing any code, just point to your data,
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select the model and it runs.
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And then there's Copilot, which is embedded across fabric.
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It helps you write queries, build reports,
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and create pipelines.
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You just describe what you want in plain English
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and Copilot generates the code.
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It's like having a junior data engineer
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sitting next to you ready to help at any moment.
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The vision here is simple.
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AI works on your data without moving it anywhere.
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Your data stays in one lake and the AI models come to the data.
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No copying, no exporting, no security risks.
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The data never leaves your governed environment.
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Power BI, governance and the business value.
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Now we get to the part most people actually see
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the front door to Insights Power BI.
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It's used by 550,000 organizations
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and 34 million users every month,
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making it the most widely used business intelligence tool
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in the world.
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And in fabric, it becomes something even more powerful.
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Here's the key.
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In fabric, Power BI connects directly to one lake
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using something called direct lake mode.
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This is different from the traditional import mode
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where you copy data into Power BI's internal storage.
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Instead, direct lake queries the data
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where it sits in one lake with no refresh needed,
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no duplication and the data is always current
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and blazing fast.
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Underneath every Power BI report is a semantic model.
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The brain of your report where you define business logic,
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measures and relationships.
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And now you can build these models entirely
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in a web browser.
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Web modeling is generally available
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so you can create a semantic model, build relationships
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and write DAX measures all from a browser even on a Mac.
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No desktop app required, but all this data power
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means nothing without governance.
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And fabric has governance built in from the start.
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Microsoft Perview provides sensitivity labels
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that follow your data everywhere.
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If a report contains sensitive information
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that labels stays with it, even when exported.
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Data loss prevention policies automatically detect
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sensitive data and block unauthorized sharing
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and access controls ensure only the right people see the right data.
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Domains help you organize data by business area
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with separate governance rules
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so your finance data can have stricter controls
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than your marketing data.
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Each domain can be managed by its own team,
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making it governance that scales with your organization.
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Now let's talk about real results.
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This isn't just theory.
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Eastman Chemical used fabric to reduce sales preparation
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time by 83%, what used to take four hours now
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takes about 40 minutes.
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Eaton Solutions cut manual effort by 75%
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with processes that require 10 to 15 steps now taking two.
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And Sonata Software saves 30,000 hours
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of manual reconciliation every year,
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redirecting that human effort to higher value work.
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The cost model is straightforward.
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You pay for capacity, the compute power that runs your workloads.
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Microsoft has built in smoothing and search protection
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to manage peaks.
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Smoothing spreads the cost of background operations
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over 24 hours, so you don't get hit with sudden spikes
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and search protection limits background jobs
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during busy periods to keep interactive performance stable.
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You pay for what you use
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and you don't get surprised.
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Let's bring this all together.
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Fabric isn't just another Microsoft product.
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It's a complete rethinking of how data platforms should work.
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One platform, one lake, one copy of data and infinite possibilities.
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And with AI and co-pilot built in, it's accessible to everyone,
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not just data professionals, but business analysts, sales teams,
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operations managers, anyone who needs answers from data.
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Here's your homework.
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Go to fabric, Microsoft.com, start a free trial
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and create your first workspace.
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Just try it.
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You'll see how the pieces fit together in a way
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that no amount of reading can replace.
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If this episode helped you understand fabric better,
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subscribe on your favorite podcast platform
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and share it with someone who's starting their data journey.
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They'll thank you.
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Next time, we'll break down one lake short cuts in plain English.
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How they work, why they matter,
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and how to use them without moving data around.
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That's one you won't want to miss.
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Until then, keep learning.