Information
In May 2015, Microsoft released the Local Administrator Password Solution (LAPS) tool, which is free and supported software that allows an organization to automatically set randomized and unique local Administrator account passwords on domain-attached workstations and Member Servers. The passwords are stored in a confidential attribute of the domain computer account and can be retrieved from Active Directory by approved Sysadmins when needed.
The LAPS tool requires a small Active Directory Schema update in order to implement, as well as installation of a Group Policy Client Side Extension (CSE) on targeted computers. Please see the LAPS documentation for details.
LAPS supports Windows Vista or newer workstation OSes, and Server 2003 or newer server OSes. LAPS does not support standalone computers - they must be joined to a domain.
Note: Organizations that utilize 3rd-party commercial software to manage unique & complex local Administrator passwords on domain members may opt to disregard these LAPS recommendations.
Note #2: LAPS is only designed to manage _local_ Administrator passwords, and is therefore not recommended (or supported) for use directly on Domain Controllers, which do not have a traditional local Administrator account. We strongly encourage you to only deploy the LAPS CSE and LAPS GPO settings to member servers and workstations.
Rationale:
Due to the difficulty in managing local Administrator passwords, many organizations choose to use the same password on all workstations and/or Member Servers when deploying them. This creates a serious attack surface security risk because if an attacker manages to compromise one system and learn the password to its local Administrator account, then they can leverage that account to instantly gain access to all other computers that also use that password for their local Administrator account.
Solution
In order to utilize LAPS, a minor Active Directory Schema update is required, and a Group Policy Client Side Extension (CSE) must be installed on each managed computer. When LAPS is installed, the file 'AdmPwd.dll' must be present in the following location and registered in Windows (the LAPS AdmPwd GPO Extension / CSE installation does this for you):
C:\Program Files\LAPS\CSE\AdmPwd.dll
Impact:
No impact. When installed and registered properly, 'AdmPwd.dll' takes no action unless given appropriate GPO commands during Group Policy refresh. It is not a memory-resident agent or service.
In a disaster recovery scenario where Active Directory is not available, the local Administrator password will not be retrievable and a local password reset using a tool (such as Microsoft's Disaster and Recovery Toolset (DaRT) Recovery Image) may be necessary.