When attempting to create a data source for performance point services I encountered this error.  The cause of this error has to do with setting up an unattended service account for PPS.  Do so as follows:

 

  1. Navigate to Central Administration
  2. Under Application Management, click Manage Service Applications
  3. Click on the PerformancePoint Service Application
  4. Click on PerformancePoint Service Application Settings
  5. Specify an account for the Unattended Service Account as well as a password, then click OK

Now you should no longer receive the error.

 

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