What is a Service?

Most confusion about the Service class actually revolves around what it is not:

    A Service is not a separate process. The Service object itself does not imply it is running in its own process; unless otherwise specified, it runs in the same process as the application it is part of.
    A Service is not a thread. It is not a means itself to do work off of the main thread (to avoid Application Not Responding errors).

Thus a Service itself is actually very simple, providing two main features:

    A facility for the application to tell the system about something it wants to be doing in the background (even when the user is not directly interacting with the application). This corresponds to calls to Context.startService(), which ask the system to schedule work for the service, to be run until the service or someone else explicitly stop it.
    A facility for an application to expose some of its functionality to other applications. This corresponds to calls to Context.bindService(), which allows a long-standing connection to be made to the service in order to interact with it.

When a Service component is actually created, for either of these reasons, all that the system actually does is instantiate the component and call its onCreate() and any other appropriate callbacks on the main thread. It is up to the Service to implement these with the appropriate behavior, such as creating a secondary thread in which it does its work.

Note that because Service itself is so simple, you can make your interaction with it as simple or complicated as you want: from treating it as a local Java object that you make direct method calls on (as illustrated by Local Service Sample), to providing a full remoteable interface using AIDL.
Service Lifecycle

There are two reasons that a service can be run by the system. If someone calls Context.startService() then the system will retrieve the service (creating it and calling its onCreate() method if needed) and then call its onStartCommand(Intent, int, int) method with the arguments supplied by the client. The service will at this point continue running until Context.stopService() or stopSelf() is called. Note that multiple calls to Context.startService() do not nest (though they do result in multiple corresponding calls to onStartCommand()), so no matter how many times it is started a service will be stopped once Context.stopService() or stopSelf() is called; however, services can use their stopSelf(int) method to ensure the service is not stopped until started intents have been processed.

For started services, there are two additional major modes of operation they can decide to run in, depending on the value they return from onStartCommand(): START_STICKY is used for services that are explicitly started and stopped as needed, while START_NOT_STICKY or START_REDELIVER_INTENT are used for services that should only remain running while processing any commands sent to them. See the linked documentation for more detail on the semantics.

Clients can also use Context.bindService() to obtain a persistent connection to a service. This likewise creates the service if it is not already running (calling onCreate() while doing so), but does not call onStartCommand(). The client will receive the IBinder object that the service returns from its onBind(Intent) method, allowing the client to then make calls back to the service. The service will remain running as long as the connection is established (whether or not the client retains a reference on the service's IBinder). Usually the IBinder returned is for a complex interface that has been written in aidl.

A service can be both started and have connections bound to it. In such a case, the system will keep the service running as long as either it is started or there are one or more connections to it with the Context.BIND_AUTO_CREATE flag. Once neither of these situations hold, the service's onDestroy() method is called and the service is effectively terminated. All cleanup (stopping threads, unregistering receivers) should be complete upon returning from onDestroy().
Permissions

Global access to a service can be enforced when it is declared in its manifest's <service> tag. By doing so, other applications will need to declare a corresponding <uses-permission> element in their own manifest to be able to start, stop, or bind to the service.

In addition, a service can protect individual IPC calls into it with permissions, by calling the checkCallingPermission(String) method before executing the implementation of that call.

See the Security and Permissions document for more information on permissions and security in general.
Process Lifecycle

The Android system will attempt to keep the process hosting a service around as long as the service has been started or has clients bound to it. When running low on memory and needing to kill existing processes, the priority of a process hosting the service will be the higher of the following possibilities:

    If the service is currently executing code in its onCreate(), onStartCommand(), or onDestroy() methods, then the hosting process will be a foreground process to ensure this code can execute without being killed.

    If the service has been started, then its hosting process is considered to be less important than any processes that are currently visible to the user on-screen, but more important than any process not visible. Because only a few processes are generally visible to the user, this means that the service should not be killed except in extreme low memory conditions.

    If there are clients bound to the service, then the service's hosting process is never less important than the most important client. That is, if one of its clients is visible to the user, then the service itself is considered to be visible.

    A started service can use the startForeground(int, Notification) API to put the service in a foreground state, where the system considers it to be something the user is actively aware of and thus not a candidate for killing when low on memory. (It is still theoretically possible for the service to be killed under extreme memory pressure from the current foreground application, but in practice this should not be a concern.)

Note this means that most of the time your service is running, it may be killed by the system if it is under heavy memory pressure. If this happens, the system will later try to restart the service. An important consequence of this is that if you implement onStartCommand() to schedule work to be done asynchronously or in another thread, then you may want to use START_FLAG_REDELIVERY to have the system re-deliver an Intent for you so that it does not get lost if your service is killed while processing it.

Other application components running in the same process as the service (such as an Activity) can, of course, increase the importance of the overall process beyond just the importance of the service itself.
Local Service Sample

One of the most common uses of a Service is as a secondary component running alongside other parts of an application, in the same process as the rest of the components. All components of an .apk run in the same process unless explicitly stated otherwise, so this is a typical situation.

When used in this way, by assuming the components are in the same process, you can greatly simplify the interaction between them: clients of the service can simply cast the IBinder they receive from it to a concrete class published by the service.

An example of this use of a Service is shown here. First is the Service itself, publishing a custom class when bound: