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Opening Up Fabric: A Guide to Secure External Data Sharing

August 2, 2025

How to Share Data Securely in Microsoft Fabric

Sharing data with external partners can be risky, costly, or frustrating unless you choose the right method. Microsoft Fabric offers multiple approaches but choosing the wrong one can lead to unnecessary costs, security gaps, or frustrated users.

This guide examines each method and offers a practical decision framework to help you select the right approach for your specific needs.

Key Factors for Choosing a Microsoft Fabric Data Sharing Method

Several key factors influence the right choice:

  • Duration of access required (short-term vs. long-term)
  • Consumer’s Fabric capacity availability
  • Type of access needed (interactive vs. programmatic)
  • Workload characteristics (analytical queries, file access, or semantic modelling)

Let’s examine each option in detail with their benefits and limitations:

What Are OneLake SAS Tokens

When to Use

OneLake Shared Access Signature (SAS) tokens are ideal for providing temporary, programmatic access to external systems or users for less than one hour.

Use Cases

  • Temporary data exports for external processing
  • One-time data transfers to partner systems

How It Works

  • Duration: Short-term access (< 1 hour)
  • Authentication: Backed by Microsoft Entra Identity
  • Generation: Can be created programmatically using Entra credentials

Key Benefits

  • Security: Time-limited access reduces security exposure
  • Automation: Programmatic generation enables automated workflows
  • Simpler management: No complex user management required

Limitations

  • Time Constraint: Maximum 1-hour access duration
  • Limited Scope: Works only for specific data objects
  • Technical Implementation: Requires development effort for token generation and consumption

External Data Sharing in Microsoft Fabric

When to Use

This method is best when external partners have their own Fabric capacity and require ongoing access without data duplication.

Use Cases

  • Healthcare platforms providing benchmark data to hospital networks with existing Fabric investments
  • Retail chains sharing sales data with brand partners who have Fabric capacity for market analysis

How It Works

  • Architecture: Cross-tenant collaboration with no data movement
  • Storage: Single copy remains in your workspace
  • Compute: Consumer’s Fabric capacity handles processing costs
  • Access Method: Data appears as shortcuts in the consumer’s Lakehouse and can be consumed through their Lakehouse SQL Analytics Endpoint and Semantic Models
  • Supported Fabric Items: External Data Share supports Lakehouse (multiple schemas, tables, and folders in a single share), KQL Databases, SQL Databases, and Mirrored Databases

Key Benefits

  • Cost Efficiency: Consumer handles compute costs
  • Data Governance: Single source of truth maintained
  • Flexibility: Supports multiple data types and access patterns
  • Scalability: Works well for large-scale collaborations

Limitations

  • Nested Shortcuts: Shortcuts within provider Lakehouse folders cannot be shared through external data share
  • Limited Control: Reduced governance once data is shared

Microsoft Entra B2B Collaboration and Service Principal

Both approaches provide access to external users/apps to your Fabric environment with shared characteristics but serve different access patterns.

Common Benefits:

  • Granular Control: Detailed permission management at workspace and item levels
  • No Consumer Capacity Required: Works when partners lack Fabric investment
  • Comprehensive Access: Supports all Fabric workloads and item types

Common Considerations:

  • Cost Impact: Your organization bears all compute costs
  • Security Management: Requires ongoing lifecycle management and monitoring

Granting Secure Interactive Access with Microsoft Entra B2B

When to Use:

External users need interactive access to your Fabric environment.

Use Cases:

  • External consultants requiring full Fabric access for analysis and dashboards
  • Auditors needing comprehensive interactive access during compliance reviews

How It Works:

  • External users are added as guest users in your Entra tenant. Guest users have native Fabric interface access with standard security controls

Specific Benefits:

  • Native Experience: Full interactive Fabric interface and capabilities

Service Principal

When to Use:

Non-interactive, programmatic access is needed for external applications.

Use Cases:

  • External ETL systems requiring automated data extraction
  • Partner applications needing API-based data integration

How It Works:

  • Service principal (application registration) created in Azure Active Directory
  • External applications authenticate using SP client credentials

Specific Benefits:

  • Automated Access: Enables unattended, programmatic integration scenarios
  • Scalable Authentication: Supports high-volume API calls and data operations
  • GraphQL API: Applications can connect to GraphQL API for Fabric using SP to access the data using standard GraphQL API queries. This eliminates the need to access the data warehouse directly.

Specific Considerations:

  • Limited Functionality: Cannot perform interactive operations or access features requiring user context
  • Credential Management: Requires secure storage and rotation of service principal credentials

Sharing Power BI Semantic Models with External Users

When to Use

This approach is specifically designed for sharing Power BI semantic models with external users who need to build their own reports and analyses.

Use Cases

  • Franchise headquarters sharing standardized metrics for franchisees to create location-specific reports
  • Retail companies providing sales data to channel partners for territory reporting and forecasting

How It Works

  • Users must have Power BI Pro or Premium Per User licenses in the home tenant (consumer)
  • External users are added as guest users in your Entra tenant and provided access to the semantic model

Key Benefits

  • Self-Service Analytics: Allows external users to create reports using your semantic models in their own
  • Data Consistency: Single semantic model ensures consistent business logic

Considerations

  • External users need Pro or Premium Per User licenses
  • Semantic model cannot be modified by the external users

Decision Framework: Choosing the Right Approach

For Short-Term Access (< 1 hour)

Use OneLake SAS Tokens when:

  • You need programmatic, temporary access
  • External systems require direct data access

For Long-Term Collaboration

Use External Data Share when:

  • Consumer has Fabric capacity
  • You want to minimize compute costs
  • Data sovereignty is important (no data movement)

Use Entra B2B Collaboration when:

  • Consumer does not have Fabric Capacity
  • Interactive access is required and full Fabric interface functionality is needed

Use Service Principal when:

  • Non-interactive, programmatic access is required
  • External applications need automated API integration

Use Semantic Model In-Place Sharing when:

  • Business logic consistency is crucial
  • Users have appropriate Power BI licensing
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Conclusion

Success in external data sharing depends on matching the right approach to your specific requirements. The key is balancing security, functionality, and cost while maintaining the flexibility to adapt as business needs evolve. Use this decision framework as your starting point but remember that hybrid approaches combining multiple methods may be necessary for complex collaboration scenarios.

Padmasharan is a skilled data engineer with deep hands-on experience designing scalable, cloud-native data platforms across GCP and Azure. At Data Crafters, he helps organizations streamline data workflows using Python, SQL, and modern orchestration tools. From building robust pipelines with Apache Spark and Airflow to enabling real-time insights with Synapse, BigQuery, and Power BI, Padmasharan brings a strong mix of technical depth and adaptability to every project.

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