OData defines an abstract data model and a protocol that let any client access information exposed by any data source. Figure 1 shows some of the most important examples of clients and data sources, illustrating where OData fits in the picture.
 Before going into more details , first look into below videos explaining What and Why.

What is OData
Why OData

For more and detailed information on OData and its usage follow this Microsoft Link

Going forward we will see the importance of OData while dealing with MVC4 WEB-API.

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