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When you configure authentication for an application link, you are defining the level of trust between the two linked servers. When configuring a link from one application to another, you can set up:
- Incoming authentication (authentication of requests coming from a linked application into this application).
- Outgoing authentication (authentication of requests sent from this application to a linked application).
See Configuring Authentication for an Application Link.
Application Links Quick Start Guide
Application Links Administrator's Guide