Use Windows Authentication when you can
Jason Taylor, Prashant Bansode, Carlos Farre, Madhu Sundararajan, Steve Gregersen
Use Windows authentication when both the client and service are in trusted domains, such as in an Intranet scenario. By using Windows authentication with Active Directory, you benefit from a unified identity store, centralized account administration, enforceable
account and password policies, and strong authentication that avoid sending passwords over the network.
You cannot use Windows Authentication when the client and/or server do not have access to AD. This is generally the case when the client and server are communicating over an Internet connection.