PowerPivot is an add-in for Microsoft Excel 2010 that enables you to import millions of rows of data from multiple data sources into a single Excel workbook, create relationships between heterogeneous data, create calculated columns and measures using formulas, build PivotTables and PivotCharts, and then further analyze the data so that you can make timely business decisions without requiring IT assistance.
In both Excel and in Power Pivot, you can create a Data Model, a collection of tables with relationships. The data model you see in a workbook in Excel is the same data model you see in the Power Pivot window. Any data you import into Excel is available in Power Pivot, and vice versa.
How the data is stored?
The data that you work on in Excel and in the Power Pivot window is stored in an analytical database inside the Excel workbook, and a powerful local engine loads, queries, and updates the data in that database. Because the data is in Excel, it is immediately available to PivotTables, PivotCharts, Power View, and other features in Excel that you use to aggregate and interact with data. All data presentation and interactivity are provided by Excel; and the data and Excel presentation objects are contained within the same workbook file. Power Pivot supports files up to 2GB in size and enables you to work with up to 4GB of data in memory.
Saving to SharePoint:
Workbooks that you modify with Power Pivot can be shared with others in all of the ways that you share other files. You get more benefits, though, by publishing your workbook to a SharePoint environment that has Excel Services enabled. On the SharePoint server, Excel Services processes and renders the data in a browser window where others can analyze the data.
On SharePoint, you can add Power Pivot for SharePoint to get additional collaboration and document management support, including Power Pivot Gallery, Power Pivot management dashboard in Central Administration, scheduled data refresh, and the ability to use a published workbook as an external data source from its location in SharePoint.