What is the main distinction between "Data sources" and "Data sets" in Power BI?

The main distinction between "Data sources" and "Data sets" in Power BI lies in their definitions and roles within the data modeling process. Data sources refer to the original locations or systems where the raw data is stored, such as databases, web services, spreadsheets, or cloud services. These sources provide the foundational data that can be used for analysis.

On the other hand, datasets are structured representations of that raw data within Power BI after it has been transformed and organized for analysis. When data from a source is imported or connected within Power BI, it is then formatted, and potentially aggregated or filtered, forming a dataset that is used for creating visualizations and reports.

This understanding highlights how data flows from the original sources into the Power BI environment, where it becomes useful for analyzing business metrics and trends through well-defined datasets. The roles of data sources and datasets are complementary, with the former being foundational and the latter being the modeled data ready for analytical use.