Telerik Reporting does not provide its own data layer but depends on
the existing .NET objects (DataSet, Data Table, DataView, ADO.NET,
lists - for more information on report data binding, please, refer to this help topic
Because of that, the Telerik Reporting Data Source Wizard cannot be
used to connect to web service. You can however use the NeedDataSource event
for hooking up the web service to the report.
the Telerik team