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I have been asked to research External Lists. After exploration I came to know that in order to use data which isn't there on SharePoint we make use of External List.

Now can anyone tell me a real world example of where exactly we can make use of this External List and what are the other things possible while using External List?

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Lets consider an example that you have your data in SQL Server and you want to display in SharePoint site.

So in this case you can create External List (BCS)

If you want to learn how to create an External List then please go through How to: Create External Lists in SharePoint

More references

For knowing limitations using External List please refer 25 Limitations of External Lists in SharePoint 2010

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