Referenced Mosaic Datasets
Referenced mosaic datasets are used to create additional mosaic datasets that are a subset of the derived mosaic dataset, or when additional functions are required, or to create a mosaic dataset that others can use but can't alter the data that is contained. Typically for elevation a referenced mosaic dataset may be created to provide a mosaic dataset that returns hillshade, slope, or aspect. With the addition of ArcGIS for Server functions at 10.1, the number of referenced mosaic datasets created is generally less, because multiple server functions can be applied to a service without the requirement of creating multiple mosaic datasets or services. Therefore, referenced mosaic datasets are generally created if a service that provides a specific set of functions is required by default.
Most workflows will create a primary service that will include additional server functions when published. They may add a few referenced mosaic datasets to represent common services that are often requested and to which users would typically not want to change the defaults.