May 3 announcement FAQ

The Power BI Premium calculator (https://powerbi.microsoft.com/en-us/calculator/) is very unclear te me. I would think that there is a choice between either acquiring a Power BI Premium node for an entire organization or acquiring individual Power BI PRO licenses.

This leads to the conclusion that it's best to acquire individual Power BI PRO licenses up to 500 users ($4,995 / $9.99 = 500). When the number of Power BI users (either producers or consumers) exceeds 500, it's cheaper to acquire a Premium license.

However, the calculator adds up the price for a Premium node ($4,995) to any number of Power BI PRO licenses ($9.99 each).

As a result, even for 1 single user the total amount is $5,005 a month, or over $60K a year!

I can't believe this could be true, because this would be the end of Power BI for all small to mid-sized organisations.

Hopefully I am being stupid and I am missing something here, but I would be very relieved if somebody could reassure me by answering the following questions:

1. Is my assumption, that there is a choice between either a number of individual Power BI PRO licenses or an organization-wide Power BI Premium 'capacity', right?

2. If so, why would we need a calculator for this, as it's clear to see that 500 users is the turning point?