Power BI Pro licenses would be required for users publishing reports, sharing dashboards, collaborating with colleagues in workspaces and engaging in other related activities. Power BI Premium would enable those Pro users to distribute content without recipients being licensed individually.
There may be specific requirements in the context of a government organization. But, in general, capacity in Power BI Premium can be applied to a specific set of users (e.g. team, department) or applied broadly across the organization - this happens by assigning users to workspaces in the dedicated capacity allocated to an organization as part of Power BI Premium. The only caveat is that for now, the IT admin for the tenant needs to do the initial purchase.
Power BI Embedded will continue to be available for existing apps for a minimum of 12 months – it may be longer depending upon the nature of your licensing agreement. For example, if you have an enterprise agreement (EA), Power BI Embedded will be available until the expiration of your existing agreement. After that time apps will need to be migrated to Power BI and licensed through Power BI Premium
Thanks for asking this question. We needed to go back and make sure our T&C would cover this. The answer is Power BI Pro trial users will be eligible for the extended Power BI Pro trial offer as long as they registered for the free service on or before May 2. Please refer back to the extended Power BI Pro trial terms and conditions.
Sorry if the answers have not tackled your question about free users. As you can see, the FAQ does not mention Office 365 licenses or users at all and that is by the design: all Power BI permissions and features for Pro and Free users are defined by a Power BI license, not an Office 365 one.
This means, and to answer your question more specifically, if the users you're sharing dashboards and reports with today do not have a Pro license, they will need one on June 1st to do so. It doesn't matter if they are Office 365 users or not.
Free users, beginning June 1st , can take advantage of the extended Pro trial to continue accessing the content. After the extended trial expires, users will need a Pro license to maintain access.
Terms and conditions for the extended trial can be found here.