Application pool identity or Impersonation

Question

(A question of similar vein has been asked before but both the question and the accepted answer do not provide the detail I am looking for)

With the

Answer 1

If you want your web services to connect to SQL via Windows authentication, you will almost certainly want to set up each application with the dedicated app pool option. This requires the least amount of setup and administration.

If you go the impersonation route, you'll need to account for the "two-hop" issue. When a user calls a web service that is using impersonation, the web service can access local resources, as that user. However, if the web service tries to connect to a non-local resource (e.g., a database running on a separate server), the result will be an authentication error. The reason is that NTLM prevents your credentials from making more than one "hop". To workaround this, you would need to use Kerberos delegation. Delegation isn't difficult to set up, but it does require Domain Admin privileges, which can make things difficult in some corporate environments.

In addition, using impersonation means that you need to manage database permissions for each user that may visit your web service. The combination of database roles and AD groups will go a long way in simplifying this, but it's an extra administrative step that you may not wish to conduct. It's also a possible security risk, as certain users may end up with privileges that are greater than your web services are anticipating.