Hi,

UMDS was invented to separate vCenter with embedded Update Manager from Internet. Security reasons. You can use UMDS to build local, on-premise patch repository and the transfer the updates manually to Update Manager or publish the repository using internal https server.

You can use UMDS as You wish pointing Software Depot in Auto Deploy to http URL or import the zip or ISO files manually.

There're no seroius differences using UMDS or external online depot.