When publishing a raster layer by value, orthorectification will not occur on the server as the DEM image is not copied to the server.
Solution
- Register the folder path containing
the DEM image on the server as a data store.
Learn more about registering the data sources with ArcGIS server
- Or, you can create an orthorectified raster using the Create Ortho-corrected Raster Dataset tool or by exporting your orthorectified on-the-fly raster dataset layer using the ArcMap Export Raster dialog box, found by right-clicking the raster in the Table of Contents.
Note:
Once you address the issue, click the Analyze button on the Service Editor dialog box to reanalyze the service.
More information
See Fundamentals of orthorectifying a raster dataset for more information.