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Data Source Credentials - Best Practice

Posted on 2008-10-22
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Last Modified: 2012-06-27
Windows 2003 running SQL2005 with Reporting Services 9.00.3282.00SP2Enterprise Edition (64-bit)

Is there a resource which provides definitive best practices or recommendations for configuration of SQL 2005 DataSources?  I have found within the different forums various resolutions people have tried but have not been able to find a best practice scenario.
I have used succesfully within another reporting services environment the DataSource option: "Credentials stored securely in the report server" but is this best practice? Our developers are recommending that i use the windows integrated security.

The problem associated with my question is related to:
Events leading up to the issue:
After transferring a set of reports the data source was set to use "windows integrated security"
The reportingservices service on the reporting services server is set to use local system

Specific error:
Running the report(s) results in the following error:
An error has occurred during report processing. Cannot create a connection to data source 'datasourcename'. Login failed for user 'NT AUTHORITY\ANONYMOUS LOGON'. For more information regarding this error it was recommend to enable remote error
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Microsoft indicates --> this error occurs when credentials are passed across multiple computer connections. If you are using Windows Authentication, and the Kerberos version 5 protocol is not enabled, this error occurs when credentials are passed across more than one computer connection. To work around this error, consider using stored credentials or prompted credentials. For more information about how to work around this issue, see Specifying Credential and Connection Information for Report Data Sources.
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Other troubleshooting steps I have tried on this:
created a test system dsn:
Microsoft SQL Server ODBC Driver Version 03.86.3959
Running connectivity tests...
Attempting connection
Connection established
Verifying option settings
Disconnecting from server
TESTS COMPLETED SUCCESSFULLY!
---------------------------------------------------
Enabled remote errors for reporting services
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Question by:mscitssae
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Jim P. earned 500 total points
ID: 22786260
>> The reportingservices service on the reporting
>> services server is set to use local system

It is a Best Practice /security hole that you should not use the the Local System account for any SQL service. It should be a regular domain user account with permissions only to the directories and files that are needed on the server that it is running on.

Change that and windows authentication should work fine.
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Expert Comment

by:Jim P.
ID: 22864389
Glad to be of assistance. May all your day get brighter.
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