Historically, a two-step procedure for estimation of Universal Time and polar motion from observations was adopted: night averages from individual observatories formed a raw non-equidistant time series that was edited for outliers, smoothed, and formed the final data product. This approach was by inertia used for processing modern space geodesy observations. I will present an alternative one-step method and its application for processing a dataset of VLBI observations since 1990.0 through present. The essence of this approach is to represent the Earth orientation parameters in a form of an expansion into basic functions and estimate of the expansion coefficients directly from observations. A further extension of this approach is to assimilate not only space geodesy data, but atmospheric and ocean angular momentum from assimilation numerical weather models and their forecasts. That makes a smooth bridge between Earth rotation estimation and prediction. I will talk about my experience of running data analysis in such a way on a semi-operational basis, present results, and discuss advantages and disadvantages of this approach.