Having implemented both patterns across multiple enterprise deployments, I can offer some consolidated insights on the security and compliance implications.
For embedded sharing link security: The fundamental weakness is link-based access control. While Power BI supports link expiration and view-only permissions, you’re still distributing URLs that grant access. In multi-tenant scenarios like yours (200+ clients), this creates several risks. First, link forwarding-even with RLS, if a client forwards their link to someone at a competitor, your RLS rules need to be airtight. Second, link management overhead-revoking access means regenerating and redistributing links. Third, limited identity context-you can’t easily implement conditional access policies or step-up authentication based on data sensitivity.
For row-level security enforcement: Both approaches honor RLS rules, but the enforcement context differs critically. With sharing links, RLS filters based on the Power BI user account associated with the link. If you’re using anonymous links, RLS may not apply as expected-you’d need to generate per-user links, which defeats the simplicity advantage. With App Owns Data, RLS filters based on the effective identity you pass in the embed token. This allows dynamic RLS application-you can pass different roles or filter values based on your application’s authorization logic. For example, Client A sees only their data because your app passes “ClientID=A” in the embed token, and your RLS rule filters on that value.
For audit logging and compliance: This is where App Owns Data significantly outperforms sharing links. Power BI’s activity logs for embedded content include the effective identity you passed, creating traceable audit records. You can answer questions like “Which clients accessed financial reports on March 10th?” by querying activity logs with your client identifiers. Sharing links produce generic “link-based access” events with minimal user context. For compliance frameworks requiring detailed access logs (SOC 2, HIPAA, GDPR Article 30), this gap often disqualifies sharing links from consideration.
Additional considerations for your 200+ client scenario: Implement token refresh logic to prevent session interruptions-embed tokens expire after 1 hour by default. Use Azure Key Vault to secure your service principal credentials. Consider implementing a token cache to reduce API calls to Power BI. For RLS, test thoroughly with multiple client identities to ensure no data leakage between tenants. Monitor embed token generation rates and implement rate limiting to prevent abuse.
My recommendation: Option B (App Owns Data) is the appropriate choice for your security requirements and client scale. The development investment is offset by better security posture, comprehensive audit capabilities, and operational flexibility. Reserve sharing links for internal use cases or simple public dashboards where detailed audit trails aren’t required.