Failed to create persistent connection to ADMIN$ shared folder on host

I was just checking out Poul Preben’s blog and discovered a fix for an issue I encountered during an earlier Veeam deployment. Don’t you love finding answers to those mysterious issues, I certainly do.

The problem arose whenever I tried to add a particular windows server into the Veeam managed backup infrastructure. The server was earmarked to become a Veeam Proxy and Backup Repository. As per best practices we didn’t join this server to the domain and created a dedicated local account on the server for Veeam authentication. Remember if the logins on the machine to-be-backed up and the backup storage are the same, we call that unwanted correlation.

Unfortunately, we ran into the below issue when trying to install the Veeam Deployment Service.

[my.repository.fqdn] Failed to install deployment service.The Network path was not found–tr: Failed to create persistent connection to ADMIN$ shared folder on host [my.repository.fqdn].–tr: Failed to install service [VeeamDeploymentService] was not installed on the host [my.repository.fqdn].

The Veeam binaries are pushed through the ADMIN$ share and it turns out that this share cannot be accessed with a local administrator account by default, due to Remote UAC being enabled. If we had used the local Administrator (SID 500) account however, this issue wouldn’t have occurred.

Poul details the fix on his blog which I’ll link below.

https://poulpreben.com/local-service-account-for-veeam-components/

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