OData Api vs REST Api : Key Differences for Enterprise Integrations

 

Key Takeaways (TL;DR)

 

• REST API is the most widely adopted integration style, offering flexibility and broad ecosystem support.
• OData API is a REST-based protocol with built-in query options, particularly strong for structured enterprise data (e.g., SAP, Dynamics 365, SuccessFactors).
• Enterprises face challenges in choosing the right API for scalability, cost, and data automation.
• eZintegrations™ supports both REST and OData APIs, enabling seamless enterprise integration and AI workflow automation without technical overhead.

 

Why OData API vs REST API Matters in 2025?

 
APIs are the backbone of modern enterprise automation. In fact, 83% of enterprise workloads are now in the cloud and heavily rely on APIs for system-to-system communication (Gartner). Choosing the right API approach can make or break digital transformation.
 
This is where the debate between OData API vs REST API becomes critical. While REST APIs have dominated the last decade, OData APIs are gaining traction in ERP-heavy environments like SAP, Dynamics 365, and SuccessFactors because of their query-friendly structure.
 
For CIOs, IT leaders, and integration teams, the wrong choice can lead to:
 

• Data silos when APIs don’t scale across systems.
• Higher costs due to custom coding for every integration.
• Missed opportunities for AI-driven automation if APIs can’t handle unstructured or complex queries.

 
This blog breaks down OData API vs REST API, explains their use cases, highlights their pros and cons, and shows how eZintegrations™ helps enterprises integrate both seamlessly for maximum business value.

 

What is REST API?

 
REST (Representational State Transfer) API is the most widely used web API standard. It provides a flexible, lightweight architecture for connecting applications over HTTP.
 

Key Characteristics of REST API:

 

• Resource-Oriented: Everything is treated as a resource (e.g., /customers, /orders).
• Stateless: Each request is independent, reducing server overhead.
• Format Flexibility: Supports JSON, XML, YAML, etc.
• Broad Adoption: Used in systems like Salesforce REST API, Shopify REST API, Jira REST API, and WordPress REST API.

 

Example Use Case

 
A retail company uses Shopify REST API to sync product inventory with its CRM. Each product is treated as a resource, and GET/POST requests allow real-time updates.
 

Why Enterprises Use REST APIs

 

• Wide developer adoption and documentation.
• Flexible and scalable for cloud applications.
• Works with unstructured data and modern APIs like Databricks REST API and Power BI REST API.

 

What is OData API?

 
OData (Open Data Protocol) API is a REST-based protocol developed by Microsoft to simplify data exchange by standardizing query parameters. It is often used in ERP and enterprise systems that rely on structured datasets.
 

Key Characteristics of OData API:

 

• Query-Friendly: Supports $filter, $select, $expand, and $orderby for rich data queries.
• REST-Based: Inherits HTTP methods like GET, POST, PUT, DELETE.
• Data-Centric: Designed for structured enterprise systems like SAP OData API, SuccessFactors OData API, Dynamics 365 OData API, and Business Central OData API.
• Metadata Support: Provides metadata about data models, making integration easier.

 

Example Use Case

 
A manufacturing company uses SAP SuccessFactors OData API to pull employee records into a reporting dashboard. Instead of fetching bulk data, it queries only active employees using $filter=status eq ‘Active’.
 

Why Enterprises Use OData APIs

 

• Excellent fit for ERP-heavy systems.
• Reduces complexity of building custom queries.
• Works well with structured datasets where relationships are important.

 

OData API vs REST API: Key Differences

 
While OData is technically built on REST principles, the differences matter for enterprise integration.

 

When Should Enterprises Use REST API?

 
REST APIs are best when:

• You need broad compatibility across applications.
• Your data includes unstructured formats (text, JSON, files).
• Speed and developer flexibility are priorities.
• You are connecting systems like Salesforce, Jira, or Shopify.

 

When Should Enterprises Use OData API?

 
OData APIs are best when:

• You are working with ERP or enterprise systems like SAP or Dynamics.
• You need complex querying capabilities without heavy custom code.
• Data is highly structured, relational, and metadata driven.
• You want to leverage Microsoft and SAP ecosystems efficiently.

 

Enterprise Pain Points with APIs

 
Even with strong protocols, enterprises face recurring challenges:

• Integration Complexity: REST APIs often require heavy coding; OData has a learning curve.
• Scalability Issues: Custom point-to-point integrations don’t scale across departments.
• Data Silos: APIs alone don’t guarantee a unified view across CRM, ERP, SCM, and data lakes.
• AI Readiness: Neither REST nor OData natively solve unstructured data challenges critical for AI workflows.

 

How eZintegrations™ Simplifies REST and OData API Integrations?

 
This is where eZintegrations™ bridges the gap. It supports both REST API and OData API integrations while adding AI workflow automation on top.
 

Key Benefits of eZintegrations™:

 

• No-Code API Integration: Build workflows visually without custom coding.
• Supports REST & OData: Works seamlessly with Salesforce REST API, SAP OData API, SuccessFactors OData API, and more.
• AI Workflow Automation: Handles unstructured data with AI-driven document understanding.
• Pre-Built API Marketplace: 1000+ APIs ready to use, plus bring-your-own-API support.
• Cost Advantage: Transparent pricing with a free integration bridge for the first year.
• Enterprise Fit: Connects ERP, CRM, SCM, databases, and APIs into a unified AI-driven workflow.

 

Example: SAP SuccessFactors OData API with eZintegrations™

 
Instead of manually building OData queries, an HR team can use eZintegrations™ to connect SAP SuccessFactors OData API with their CRM. Data syncs automatically, while AI modules extract insights from performance reviews or unstructured documents.

 

Case Study: eZintegrations™ for Hybrid REST + OData API Workflows

 
Challenge: A global manufacturer using Dynamics 365 OData API for ERP and Salesforce REST API for CRM faced issues with data silos. Custom coding was expensive and slow.

Solution with eZintegrations™:

• Connected Salesforce REST API and Dynamics 365 OData API in a single pipeline.
• Enabled real-time syncing of customer orders, invoices, and ERP records.
• Added AI-powered document extraction for purchase orders in PDF.

Result: Faster order processing, unified reporting, and reduced IT dependency.

 

Conclusion: Choosing the Right API for Enterprise Integrations

 
When comparing OData API vs REST API, the right choice depends on your data and systems:

• REST API: Best for web, cloud, and unstructured data.
• OData API: Best for ERP and structured enterprise data.

But in practice, enterprises rarely choose just one. Modern businesses rely on both, and the challenge is integrating them effectively.

That’s where eZintegrations™ stands out. By supporting both REST and OData APIs, it enables AI-driven, no-code workflows that eliminate silos and reduce costs.

Ready to unify your REST and OData API integrations? Book a free demo of eZintegrations™ today.

 

FAQ: OData API vs REST API

 
Q1. Is OData API better than REST API?
Not necessarily. OData APIs are better for structured enterprise data (like SAP or Dynamics), while REST APIs are more versatile for cloud and web apps.

Q2. Can OData API and REST API work together?
Yes. Platforms like eZintegrations™ allow both to coexist in a single workflow, bridging ERP and modern cloud apps.

Q3. What is the main advantage of OData API?
OData APIs simplify complex queries with built-in filters and metadata, reducing the need for custom coding in enterprise systems.

Q4. What is the main advantage of REST API?
REST APIs are widely adopted, easier for developers, and work across a massive ecosystem of cloud, SaaS, and web apps.

Q5. How does eZintegrations™ help with OData API vs REST API challenges?
It unifies both under one no-code, AI-powered platform, helping enterprises scale integrations while controlling costs.