Your observation is spot on—when a service runs as Local System, it inherently uses the computer account (e.g. SERVERA$), and leveraging that identity in remote ACLs isn’t magic at all; it’s built right into how Windows handles authentication. In many cases, this technique can save you from the headache of managing thousands of separate service accounts and their password rotations. That said, while this “computer object” approach is technically valid and has been explored on various occasions, whether it’s “approved” depends on several factors in your environment.
For one, using the computer account means you’re tying the service’s identity to that particular machine. This reduces administrative overhead because the password for the computer object is automatically managed by Active Directory. However, it also means that if you ever need to move the service to a different server or have multiple services running on the same machine that require isolation from one another, it may introduce complications. In contrast, when you use dedicated service accounts—or better yet, Managed Service Accounts (MSAs or gMSAs)—you gain finer control over permissions and can separate different services’ privileges more deliberately.
There are a few additional considerations:
• Granularity and Least Privilege: Dedicated service accounts allow you to finely gauge and restrict permissions to only what’s needed. When using the computer account, you might inadvertently assign broader access than necessary because the computer account may already carry inherent machine-level privileges.
• Mobility and Scalability: The computer object approach works well when the service is firmly tied to a single host. If your service might migrate (or if you need load balancing across several hosts), you’ll likely need a different strategy, such as tailoring ACLs for a managed service account.
• Audit and Compliance: Some regulatory frameworks or internal policies require clear separations between computer identities and non-human generic service accounts. Even though the computer account is maintained by AD, auditors might prefer dedicated accounts that clearly document the service’s access requirements.
In summary, yes—it is a pattern that has been experimented with and, in specific scenarios, may even be preferable because it leverages AD’s automatic management of computer accounts. However, many organizations lean toward using dedicated or managed service accounts to be able to enforce the principle of least privilege and to gain better auditability and flexibility if services need to change hosts over time.
Ultimately, if your environment is static (each service remains on its original host) and you’re comfortable with the inherent permissions of the machine account, this approach can be quite efficient. Otherwise, exploring MSAs or gMSAs might provide the best of both worlds: automation in credential management with the added benefit of granular control.
Hope this helps clarify the pros and cons of using computer objects in ACLs instead of generic service accounts. Happy administrating!