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Bug: Cannot see SDE data from ArcGIS server if domain account is used as database authentication in ArcCatalog

Description

ArcGIS server cannot access SDE data if a Windows domain user account and password are used to make the SDE connection as database authentication in ArcCatalog.

When previewing the map service, an error displays:

"Cannot display this layer. The data source referenced by this layer may be missing or corrupted."

Cause

A Windows domain user account is not a real SQL server database account.

Workaround

Make a new database connection and check the 'operating system authentication' option. Create a new MXD, add the ArcGISSOC account into SQL server, and grant proper permission. In this case, the ArcGISSOC account is used to connect to the SDE.

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