It is a good material but needs to be painted and sealed properly to ensure that it lasts. Although older siding was made from sturdier and thicker stock, modern clap boards are rather thin and are more susceptible to cracking and splitting in about 2 to 6 years. If you are installing wood siding you should look into back priming where the whole piece of wood is sealed before it is installed on the house. Plywood has been used for quite a while as exterior siding. It can be wood that is typically fir or cedar and usually has vertical grooves.
Plywood needs to be sealed properly to keep it from delaminating.
Most commonly known as particle board. It was formerly seen more as a cardboard type composition. It must be properly maintained by painting or sealing, or it will deteriorate quickly. This siding which is similar to clapboard is designed with a tongue and groove design that interlocks the boards together. This siding also needs preservative stain or paint.