Services using Local System that use negotiate when reverting to NTLM authentication will use the computer identity vs. authenticating anonymously.

From Windows Server 2008 R2 Domain Controller Security Technical Implementation Guide

Part of Computer Identity Authentication for NTLM

Associated with IA controls: ECSC-1

SV-32445r1_rule Services using Local System that use negotiate when reverting to NTLM authentication will use the computer identity vs. authenticating anonymously.

Vulnerability discussion

This setting ensures that services using Local System that use negotiate when reverting to NTLM authentication will use the computer identity vs. authenticating anonymously.

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Configure the policy value for Computer Configuration -> Windows Settings -> Security Settings -> Local Policies -> Security Options -> “Network Security: Allow Local System to use computer identity for NTLM” to “Enabled”.

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