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Dataflows vs Datasets in Power BI

Reza Rad disambiguates two Power BI concepts:

I have presented about Power BI dataflow and datasets a lot, and always one of the questions I get is: What is the difference between dataflow and dataset. So I thought better to explain it in a post and help everyone in that understanding. In this post, you will learn what the differences between these two components are, when and where you use each of them, and how they work together besides other components of Power BI.

Read on to learn where each is useful.