Information
This policy setting determines whether Local System services that use Negotiate when reverting to NTLM authentication can use the computer identity. This policy is supported on at least Windows 7 or Windows Server 2008 R2.
The recommended state for this setting is: Enabled.
Rationale:
When connecting to computers running versions of Windows earlier than Windows Vista or Windows Server 2008 (non-R2), services running as Local System and using SPNEGO (Negotiate) that revert to NTLM use the computer identity. In Windows 7, if you are connecting to a computer running Windows Server 2008 or Windows Vista, then a system service uses either the computer identity or a NULL session. When connecting with a NULL session, a system-generated session key is created, which provides no protection but allows applications to sign and encrypt data without errors. When connecting with the computer identity, both signing and encryption is supported in order to provide data protection.
Impact:
Services running as Local System that use Negotiate when reverting to NTLM authentication will use the computer identity. This might cause some authentication requests between Windows operating systems to fail and log an error.
Solution
To establish the recommended configuration, set the following Device Configuration Policy to Enabled:
To access the Device Configuration Policy from the Intune Home page:
Click Devices
Click Configuration profiles
Click Create profile
Select the platform (Windows 10 and later)
Select the profile (Custom)
Enter a Name
Click Add
Enter the Details below
Name: <Enter name>
Description: <Enter Description>
OMA-URI: ./Device/Vendor/MSFT/Policy/Config/LocalPoliciesSecurityOptions/NetworkSecurity_AllowLocalSystemToUseComputerIdentityForNTLM
Data type: Integer
Value: 1
Select Save
Continue through the Wizard to complete the creation of the profile (profile assignments, applicability etc.)
Note: More than one configuration setting from each of the Configuration profiles (ex: Administrative Templates, Custom etc.) can be added to each Device Configuration Policy.
Default Value:
Disabled. (Services running as Local System that use Negotiate when reverting to NTLM authentication will authenticate anonymously.)