Bill Anton discusses when to use Power BI Desktop and when to use Power Pivot:
In the whitepaper, Strategic Prototyping is defined as the process of leveraging Power BI to explicitly seek out feedback from users during a requirements discovery session. The general idea is to use a prototyping tool to quickly slap together a model and mock up some reports while working closely with 1 or more business users. This helps ensure all reporting capabilities are flushed out and accounted for. After several iterations, the Power BI model becomes the blueprint upon which an enterprise solution can be based.
Prior to the emergence of Power BI, the tool of choice for strategic prototyping (at least in Microsoft shops) was Power Pivot. And even though the reporting side of Power Pivot is nowhere near as sexy as Power BI, there is one really awesome feature that does not (yet?) exist with Power BI… and that’s the “Import from PowerPivot” option in visual studio…
Bill does a good job of explaining the alternatives and, importantly, explaining that whichever you pick, there will be follow-up work.