Is this still an issue in SSRS 2008 R2: Can't use Windows authentication (integrated security) when the SQL database server is on a different machine than Reporting Services -- unless you (1) use Kerberos security, or (2) store credentials, or (3)
use credentials supplied by the user when running report AND use as Windows credentials to impersonate?
I have SSRS 2008 R2 set up on a different machine than MSSQLServer 2008 R2. When I create a report on the SSRS server that uses a data source specifying Windows integrated security, my symptom is that I get the following error:
Cannot create a connection to data source 'myDataSource'. ---> System.Data.SqlClient.SqlException: Login failed for user 'NT AUTHORITY\ANONYMOUS LOGON'.
Here is a blog describing the problem under SSRS 2005 (with IIS):
View Complete Post