Local System , Local Service and Network Service

I have been asked once, what are the differences between local service, local system and network service.

Well , Network Service is the least powerful context on the local machine. Local system and local service has administrative rights on the local machines.

So what are the differences ?

Things get exciting when we see which context is used when accessing network resources …

Local System will use the machine account when accessing network resources while Local Service will use Anonymous. This is only if Kerberos is used . If NTLM is used , then both the local system and local service will use Anonymous.

Network Service will always use the machine account for network resource access on the other hand.

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