DDE is a protocol that enables applications to exchange data in a variety of formats. Applications can use DDE for one-time data exchanges or for ongoing exchanges in which the applications update one another as new data becomes available.
The data formats used by DDE are the same as those used by the clipboard. DDE can be thought of as an extension of the clipboard mechanism. The clipboard is almost always used for a one-time response to a user command, such as choosing the Paste command from a menu. DDE is also usually initiated by a user command, but it often continues to function without further user interaction. You can also define custom DDE data formats for special-purpose IPC between applications with more tightly coupled communications requirements.
DDE exchanges can occur between applications running on the same computer or on different computers on a network.
Key Point DDE is not as efficient as newer technologies. However, you can still use DDE if other IPC mechanisms are not suitable or if you must interface with an existing application that only supports DDE. For more information, see Dynamic Data Exchange and Dynamic Data Exchange Management Library.