The servicePrincipalName int endpoint / identity parameter of the client configuration does not specify the client identifier, but the expected service identifier. Remember that WCF authentication is mutual (the client also identifies the service)
In this case, the client expects the service to run under the Network Service account.
<endpoint> <identity> <servicePrincipalName value="NT AUTHORITY\NETWORK SERVICE" /> </identity> </endpoint>
If the client and the service are on the same computer, this can be replaced by
<endpoint> <identity> <servicePrincipalName value="host/localhost" /> </identity> </endpoint>
Service authentication now depends on dns (localhost) name
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