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Depending on the nature of your application.<br />
<br />
However it is best practice to run your apps under an identity for issues such as impersonation and DB connectivity where there might be security concerns. <br />
<br />
Here is a more lengthy explanation:<br />
<br />
<a href="http://blogs.technet.com/b/tristank/archive/2011/12/22/iusr-vs-application-pool-identity-why-use-either.aspx" rel="ugc">http://blogs.technet.com/b/tristank/archive/2011/12/22/iusr-vs-application-pool-identity-why-use-either.aspx</a>
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Depending on the nature of your application.

However it is best practice to run your apps under an identity for issues such as impersonation and DB connectivity where there might be security concerns.

Here is a more lengthy explanation:

http://blogs.technet.com/b/tristank/archive/2011/12/22/iusr-vs-application-pool-identity-why-use-either.aspx [http://blogs.technet.com/b/tristank/archive/2011/12/22/iusr-vs-application-pool-identity-why-use-either.aspx]

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Am still confused about the article,<br />
<br />
What does the default ApplicationPoolIdentity do ?
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Am still confused about the article,

What does the default ApplicationPoolIdentity do ?

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If your common app pool recycles then all sessions will recycle. If you have several websites this could be a problem. &nbsp;If each website has its own apppool then a problem with one website won't affect the others.
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If your common app pool recycles then all sessions will recycle. If you have several websites this could be a problem.  If each website has its own apppool then a problem with one website won't affect the others.

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This proved useful and clarified my answer<br />
<br />
Thanks
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This proved useful and clarified my answer

Thanks

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All my web apps for Windows 2008 R2 IIS 7.5 are running with ApplicationPoolIdentity, should I change this or leaving the default option as it is<br />
<br />
Can you give me an over view of Identities and what function do they perform
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All my web apps for Windows 2008 R2 IIS 7.5 are running with ApplicationPoolIdentity, should I change this or leaving the default option as it is

Can you give me an over view of Identities and what function do they perform

IIS 7.5 ApplicationPoolIdentity

Windows Server 2008 and Windows Server 2008 R2, based on the Microsoft Vista codebase, is the last 32-bit server operating system released by Microsoft. It has a number of versions, including including Foundation, Standard, Enterprise, Datacenter, Web, HPC Server, Itanium and Storage; new features included server core installation and Hyper-V.

Windows Server 2008

IIS is Internet Information Services, the web server included with Windows Server operating systems. All current versions are built on a modular architecture; modules can be added or removed individually so that those required for specific functionality are installed. The full installation of IIS includes HTTP, security, content, compression, caching, logging and diagnostics.