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Summary:
Service came later after SID. Adding a service layer to in a way of encapsulating SID from connections.

Links:
http://stackoverflow.com/questions/43866/how-sid-is-different-from-service-name-in-oracle-tnsnames-ora
http://asktom.oracle.com/pls/asktom/f?p=100:11:0::::P11_QUESTION_ID:1508737000346067364

– A database can dynamically register with a listener using one or more service names. In fact, more than one database can register with a listener using the same service name

– SID = unique name of the INSTANCE (eg the oracle process running on the machine). Oracle considers the “Database” to the be files.

– Service Name = alias to an INSTANCE (or many instances). The main purpose of this is if you are running a cluster, the client can say “connect me to SALES.acme.com”, the DBA can on the fly change it.

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