After installation, the PI Analysis Service can run under a local account even if the PI Asset Framework is installed on a different computer, since NTLM authentication can be used between both computers. However, the PI Server install kit does not recognize this and instead forces a domain account to be used for PI Analysis Service if the PI Asset Framework is installed on a different computer. See the attached screenshot.
If the computer running the install kit is part of a domain, then each time the user wants to upgrade the PI Analysis Service, they must use a domain account temporarily and then switch back to the local account after installation, which is a pain. If the computer running the install kit is not part of a domain, then the PI Analysis Service cannot be installed or upgraded on that computer.
Please allow local accounts to be used during the installation of the PI Analysis Service if the account can be NTLM authenticated against the PI Asset Framework server.
For more information on NTLM authentication and PI, see this article:
https://customers.osisoft.com/s/knowledgearticle?knowledgeArticleUrl=KB00354