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By default SQL Server Uses a virtual account for the sql server service: NT SERVICE \ MSSQLSERVER which is a Virtual Account.

I know you can give this account nework access in a domain by adding security to MyDomain\MyComputerName$. Can the same thing be done in a workgroup? I tried to added security to MyWorkGroupName\MyComputerName$ but it won't let me. I want sql server to store backups on the network. If not is my best alternative is just to run SQL Server service as a standard user account?

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You can't do this if the machine is in a workgroup. If you have an AD domain, consider adding this server to it. It will make your life much easier.

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