Symptoms
DS-Client Installation and upgrade: Windows administrator account required for SharePoint Online and Exchange Online
Solution
Ensure that the DS-Client Service account is a user member of local Administrators group.
This user is selected during DS-Client installation: In the "Service Account" screen of the DS-Client/DS-User Setup Wizard, select "This Account" to specify a Windows administrator account, instead of selecting "Local System Account".
The Windows-specific dependencies installed for SharePoint Online and Exchange Online require a Windows administrator account for proper operation. If the DS-Client Service uses a Local System Account, "Login failure" errors may occur when you attempt to create a Backup from the Cloud (Microsoft Office 365) backup set for SharePoint Online data. Exchange Online might have issues expanding other user's accounts during the backup creation wizard. This is a limitation of the SharePoint/ Exchange authentication method used by the Microsoft SharePoint/Exchange Component Object Model SDK, which DS-Client uses to back up SharePoint/Exchange Online data.
This requirement applies if there is any possibility that you will use Asigra Cloud Backup software for the backup and restore of SharePoint/Exchange data, including OneDrive data.
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