I have a broad question about Web Services and SOA. I have a database that contains data I would like to expose for reading (just reading, no inserts or updates). Is it best to expose the data as a class or is it best to expose the information as a datareader?
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You can’t expose data reader over web service. You have to execute reader, fill data to objects and send those objects.
Check WCF Data services. It will save you a lot of work.