Failed to connect to Database

Failed to connect to the database Underlying DBMS Error [Error: Microsoft SQL Server Native Client 10.0: Cannot generate SSPI contextNo extended Error]
This error will occur with the 10.0 release of ArcSDE when using Windows Authentication to connect to a SQL Server database if the entire database is moved off the network because the SQL Server database can no longer perform Kerberos authentication against the parent (Active Directory).

See: http://support.microsoft.com/kb/811889

''SSPI is only used for TCP/IP connections that are made by using Windows Authentication. (Windows Authentication is also known as Trusted Connections or Integrated Security.) SSPI is not used by Named Pipes or multi-protocol connections. Therefore, you can avoid the problem by configuring your clients to connect from a protocol other than TCP/IP.''

Workaround

 * 1) Disable TCP/IP protocol under: Sql Server Configuration Manager > SQL Native Client 10.0
 * 2) Disable Named Pipes under: Sql Server Configuration Manager > SQL Native Client 10.0
 * 3) Disable VIA under: Sql Server Configuration Manager > SQL Native Client 10.0
 * 4) Enable Shared Memory under: Sql Server Configuration Manager > SQL Native Client 10.0



What does this do? - This forces the SQL Server Client to use Shared Memory to connect to the local SQL Server. Warning: Doing this will prevent the same client from reaching network SQL Server systems.

Here are some additional Microsoft URLs that address the error message:
1. Cannot generate SSPI Context error from SQL Server Management Studio http://dotnettim.wordpress.com/2010/08/26/cannot-generate-sspi-context-error-from-sql-server-management-studio/

2. Cannot generate SSPI context. (.Net SqlClient Data Provider) http://social.msdn.microsoft.com/Forums/en-US/sqlsecurity/thread/a89d82b3-0620-47be-bd64-be702f056c11/

This error is displayed due to issues with kerberos authentication, especially when you are using domain account to run the SQLservices. Also see ==> http://support.microsoft.com/kb/319723

3. How to use Kerberos authentication in SQL Server http://support.microsoft.com/kb/319723

4. “Cannot generate SSPI context” error message, when connect to local SQL Server outside domain http://blogs.msdn.com/b/sql_protocols/archive/2005/10/19/482782.aspx

Try using "127.0.0.1\instance_name" in the Spatial Database Connection.