Why was the XPhone Connect Server's service account reset to "LocalSystem" after updating to Connect 7?

Problem:

After a software update from XPhone Connect Version 5/6 to XPhone Connect 7, the service account was reset to "LocalSystem". Why is this the case and what are the consequences?

Answer:

Due to the update installation routine of the XPhone Connect 7 Server setup, it is not possible to take over the XPhone Server's service account after an update from V5/6. The service account has to be changed to the previous service account again after the update installation.

By resetting the service account to "LocalSystem", data source connections in the XPhone Connect Directory (such as Exchange contact folders) may no longer function, for example.