PivotTable reports are designed to aggregate a lot of numerical data into sums and totals, and to work with multidimensional data that is organized into a hierarchy. On the other hand, external data ranges are two-dimensional tables structured as rows and columns, that display nonaggregated records of source data.
When you use the Data Connection Wizard or Microsoft Query to connect to external data, you usually create an external data range. The only exception to this is when you create a PivotTable report that is connected to external data. A PivotTable report does not create an external data range. This difference in the way that connections are created is important to understand when you publish a workbook to Excel Services, because Excel Services only supports external data connections based on PivotTable reports and does not support external data ranges.
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