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:
- Navigate to Central Administration
- Under Application Management, click Manage Service Applications
- Click on the PerformancePoint Service Application
- Click on PerformancePoint Service Application Settings
- Specify an account for the Unattended Service Account as well as a password, then click OK
Now you should no longer receive the error.