Connecting to Azure SQL Database: Enterprise Security & Ingestion

In enterprise cloud ecosystems, Azure SQL Database is one of the primary cloud relational databases powering commercial applications. Connecting Power BI to Azure SQL securely requires configuring cloud firewalls, managing Microsoft Entra ID (formerly Azure AD) authentication, and selecting the optimal connectivity mode.

1. Authentication & Cloud Firewall Security

When establishing an enterprise connection between Power BI and Azure SQL Database:

1. 1
   Azure Firewall Configuration:

• In the Azure Portal, open your Azure SQL logical server.
• Navigate to Security $\to$ Networking.
• Ensure Allow Azure services and resources to access this server is toggled to ON (allows the cloud Power BI Service to communicate without requiring an on-premises gateway!).

1. 1
   Authentication Protocol:

• Instead of basic SQL username/password, use Microsoft Entra ID (OAuth 2.0):
• Enables Multi-Factor Authentication (MFA).
• Inherits Single Sign-On (SSO) for DirectQuery reports!

2. DirectQuery with Kerberos / Entra SSO

When using DirectQuery with Azure SQL:

• You can enable Single Sign-On (SSO) via Microsoft Entra ID.
• When User A opens the report, Power BI passes User A's identity directly to the Azure SQL Database.
• Any security rules or SQL permissions configured on the database are enforced natively for that user!