SQL SSIS SMO Connection fails with AD credentials

  • I have two servers running 2012 OS and 2012 SQL. DB01 which contains only the database role and IS01 that only contains integration services.

    I establish a new package on the integration services server IS01 via the visual studio client. Using the Transfer SQL Server Object task I try to create an SMO connection to DB01. If I use SQL Server authentication it works without issue. If I use Windows credentials it fails to connect.

    If I however from the IS01 server use SSMS and connect with same windows credentials (logged in user) it works without issue. Other SSIS connection managers like OLEDB, ADONET, etc also work with Windows Auth with out issue.

    Why is SMO in Integration Services unable to connect with Windows Authentication? What are the requirements for connecting with SMO?

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