What kind of data sources can Power BI connect to?

Power BI is designed to connect to a diverse range of data sources, offering users the flexibility to integrate data from various environments. This capability is crucial for creating comprehensive reports and dashboards that can gather insights from disparate systems. The correct answer highlights that Power BI can connect to both on-premises data sources, such as SQL Server databases, Excel files, and other data stored locally, as well as a variety of cloud-based services, such as Azure, SharePoint Online, and other cloud databases.

This versatility allows organizations to utilize existing data infrastructures and leverage cloud solutions simultaneously, accommodating a wide range of analytical needs. By supporting both types of data sources, Power BI ensures that users can effectively analyze and visualize their data regardless of where it resides, thus maximizing their business intelligence efforts.