It's possible to install and run both versions of Power BI Desktop (standard and Report Server optimized) on the same machine. This can be useful in organizations deploying reports to both the Power BI service and the Power BI Report server, as described in the Hybrid deployment models section.

For example, the standard Power BI Desktop application could be used to create a new report for an app workspace in the Power BI service, which utilizes the very latest features. The report server optimized version, however, would be used to create or edit reports that are deployed to the Power BI Report Server.

In the following screenshot from a Windows 10 machine, both versions of Power BI Desktop are pinned to the Start menu:

In the preceding screenshot, hovering over the icon or just observing the three dots within the application tile makes it easy to distinguish the applications. As an alternative to running both applications side by side, an organization could choose to exclusively use the Power BI Report Server-optimized version of Power BI Desktop for reports published to both the Power BI service and the Power BI Report Server. This single application approach could simplify the management of the overall deployment but would prevent the utilization of the latest features available in the standard version of Power BI Desktop.