Virtual Entity is a new featured introduced in July 2017 Update of Dynamics 365. With Virtual Entity, we can get the data from the external data source, to show inside Dynamics 365 easily with simple configuration. Earlier to achieve the same we need to write custom code to read that data or need to save that data inside Dynamics 365. With Virtual Entity, the data is still residing in the source system.
Few points to consider while using Virtual Entity are
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Configuring Virtual Entity in Dynamics 365 – Nishant Rana’s Weblog
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