CDS, previously known as the Common Data Service for Apps, is the name given to the data and services on which Dynamics 365 model-driven apps run.
At the time of publishing, Microsoft Dataverse (formerly known as the Common Data Service) was undergoing a branding change. This name change has not yet been applied to all the tools, connectors, and user interfaces in the Power Platform. You will see the use of Common Data Service and the abbreviation CDS throughout this book.
You can customize Dynamics 365 model-driven apps and build your own apps on top of CDS using the tools of the Power Platform.
You can also create a CDS environment without first-party apps and create custom business applications at a lower cost in terms of both time and licensing.
You can later install a Dynamics 365 app on your environment if you find that you need the functionality of that app.
CDS uses a mixture of Azure services to store data: Azure SQL, ...