Login failed for user "NT Authority\Anonymous Logon"

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PROBLEM

During the installation, the following error message is displayed: Login failed for user "nt authority\anonymous logon"
sql-anonymous-login-error.gif

CAUSE

This error typically occurs when using Windows Authentication and not SQL Authentication during installation. Since your currently logged in user is being used for authentication, and is probably a domain account or in Active Directory, it does not have elevated enough permission to perform the action.


RESOLUTION/WORKAROUND

Create or use an existing a SQL Server user account for use with the installation.