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There are 2 types of Authentication for SQL Server: SQL Authentication and Windows Authentication. Windows Authentication is sometimes referred to as Integrated Authentication.
Windows Authentication will use the same user who started Appian to log into SQL Server.
SQL Authentication uses a plain text username and an encrypted password in tomcat-resources.xml to authenticate when connecting to SQL Server.
To configure Windows Authentication:
1) Remove the lines for username and password from tomcat-resources.xml.
2) Modify the URL to include "integratedsecurity=true" like so:
url="jdbc:sqlserver://<host_name>:1433;databaseName=<database_name>;integratedSecurity=true"
3) Start Tomcat.