System and Application Softwares
Microsoft Windows and Office Suite
Understanding Windows Accounts: Local Service, Local System or Network Service
In earlier versions of Windows, most system services run under the powerful SYSTEM (aka Local System) account. Because most services don't need SYSTEM-level authority, Microsoft created the two new principals with less authority than SYSTEM and reconfigured many of the services on Windows 2003 and XP to run as either Local Service or Network Service.
Most services do not need such a high privilege level. If your service does not need these privileges, and it is not an interactive service, consider using the LocalService account or the NetworkService account.
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