Integration Server Administrator's Guide : Using NTLM Authentication and Integrated Windows Authentication with Integration Server : Working with Integrated Windows Authentication
Working with Integrated Windows Authentication
When Integration Server executes services that access web pages, it behaves like a web client making a request to a web server. If the web server is running Microsoft Internet Information Server (IIS), Integration Server can use Integrated Windows authentication as a means of establishing its identity. Integrated Windows authentication authenticates a user without requiring the transmission of actual passwords or sensitive account information across the network.
Note:  
Although this appendix refers to the Microsoft Internet Information Server (IIS), the information applies to any web server that supports Integrated Windows authentication.
You can use Integrated Windows authentication for connections between Integration Server and web servers on an intranet. Integration Server supports Integrated Windows authentication on the connection from the Integration Server to a proxy; however, it does not support Integrated Windows authentication on the connection from a proxy to the Internet.
If Integration Server is running as an NT service, it uses the local system rights for authentication when responding to an Integrated Windows authentication. If you log on as a user, Integration Server uses the credentials associated with that logon session when responding to an Integrated Windows authentication.
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