Hi,

I have hosted a WCF service on IIS. The configuration file is as follows

<?xml version="1.0"?>
<!--
    Note: As an alternative to hand editing this file you can use the 
    web admin tool to configure settings for your application. Use
    the Website->Asp.Net Configuration option in Visual Studio.
    A full list of settings and comments can be found in 
    machine.config.comments usually located in 
    \Windows\Microsoft.Net\Framework\v2.x\Config 
-->
<configuration>


    <configSections>
      <sectionGroup name="system.web.extensions" type="System.Web.Configuration.SystemWebExtensionsSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35">
        <sectionGroup name="scripting" type="System.Web.Configuration.ScriptingSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35">
          <section name="scriptResourceHandler" type="System.Web.Configuration.ScriptingScriptResourceHandlerSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication"/>
          <sectionGroup name="webServices" type="System.Web.Configuration.ScriptingWebServicesSectionGroup, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35">
            <section name="jsonSerialization" type="System.Web.Configuration.ScriptingJsonSerializationSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="Everywhere" />
            <section name="profileService" type="System.Web.Configuration.ScriptingProfileServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication" />
            <section name="authenticationService" type="System.Web.Configuration.ScriptingAuthenticationServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication" />
            <section name="roleService" type="System.Web.Configuration.ScriptingRoleServiceSection, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" requirePermission="false" allowDefinition="MachineToApplication" />
          </sectionGroup>
        </sectionGroup>
      </sectionGroup>
    </configSections>  


    <appSettings/>
    <connectionStrings/>

    <system.web>
        <!--
            Set compilation debug="true" to insert debugging 
            symbols into the compiled page. Because this 
            affects performance, set this value to true only 
            during development.
        -->
        <compilation debug="false">

          <assemblies>
            <add assembly="System.Core, Version=3.5.0.0, Culture=neutral, PublicKeyToken=B77A5C561934E089"/>
            <add assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
          </assemblies>

        </compilation>
        <!--
            The <authentication> section enables configuration 
            of the security authentication mode used by 
            ASP.NET to identify an incoming user. 
        -->
        <authentication mode="Windows" />
        <!--
            The <customErrors> section enables configuration 
            of what to do if/when an unhandled error occurs 
            during the execution of a request. Specifically, 
            it enables developers to configure html error pages 
            to be displayed in place of a error stack trace.

        <customErrors mode="RemoteOnly" defaultRedirect="GenericErrorPage.htm">
            <error statusCode="403" redirect="NoAccess.htm" />
            <error statusCode="404" redirect="FileNotFound.htm" />
        </customErrors>
        -->


      <pages>
        <controls>
          <add tagPrefix="asp" namespace="System.Web.UI" assembly="System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        </controls>
      </pages>

      <httpHandlers>
        <remove verb="*" path="*.asmx"/>
        <add verb="*" path="*.asmx" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        <add verb="*" path="*_AppService.axd" validate="false" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        <add verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" validate="false"/>
      </httpHandlers>
      <httpModules>
        <add name="ScriptModule" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
      </httpModules>


    </system.web>

    <system.codedom>
      <compilers>
        <compiler language="c#;cs;csharp" extension=".cs" warningLevel="4"
                  type="Microsoft.CSharp.CSharpCodeProvider, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
          <providerOption name="CompilerVersion" value="v3.5"/>
          <providerOption name="WarnAsError" value="false"/>
        </compiler>
      </compilers>
    </system.codedom>

    <system.web.extensions>
      <scripting>
        <webServices>
          <!--
              Uncomment this section to enable the authentication service. Include 
              requireSSL="true" if appropriate.

          <authenticationService enabled="true" requireSSL = "true|false"/>
          -->
          <!--
              Uncomment these lines to enable the profile service, and to choose the 
              profile properties that can be retrieved and modified in ASP.NET AJAX 
              applications.

          <profileService enabled="true"
                          readAccessProperties="propertyname1,propertyname2"
                          writeAccessProperties="propertyname1,propertyname2" />
          -->
          <!--
              Uncomment this section to enable the role service.

          <roleService enabled="true"/>
          -->
        </webServices>
        <!--
        <scriptResourceHandler enableCompression="true" enableCaching="true" />
        -->
      </scripting>
    </system.web.extensions>
    <!--
        The system.webServer section is required for running ASP.NET AJAX under Internet
        Information Services 7.0.  It is not necessary for previous version of IIS.
    -->
    <system.webServer>
      <validation validateIntegratedModeConfiguration="false"/>
      <modules>
        <add name="ScriptModule" preCondition="integratedMode" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
      </modules>
      <handlers>
        <remove name="WebServiceHandlerFactory-Integrated"/>
        <add name="ScriptHandlerFactory" verb="*" path="*.asmx" preCondition="integratedMode"
             type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        <add name="ScriptHandlerFactoryAppServices" verb="*" path="*_AppService.axd" preCondition="integratedMode"
             type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
        <add name="ScriptResource" preCondition="integratedMode" verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
      </handlers>
    </system.webServer>


  <system.serviceModel>
    <services>
      <service name="IISTest2.Service1" behaviorConfiguration="IISTest2.Service1Behavior">
        <!-- Service Endpoints -->
        <endpoint address="" binding="wsHttpBinding" contract="IISTest2.IService1">
          <!-- 
              Upon deployment, the following identity element should be removed or replaced to reflect the 
              identity under which the deployed service runs.  If removed, WCF will infer an appropriate identity 
              automatically.
          -->
          <identity>
            <dns value="localhost"/>
          </identity>
        </endpoint>
        <endpoint address="mex" binding="mexHttpBinding" contract="IMetadataExchange"/>
      </service>
    </services>
    <behaviors>
      <serviceBehaviors>
        <behavior name="IISTest2.Service1Behavior">
          <!-- To avoid disclosing metadata information, set the value below to false and remove the metadata endpoint above before deployment -->
          <serviceMetadata httpGetEnabled="true"/>
          <!-- To receive exception details in faults for debugging purposes, set the value below to true.  Set to false before deployment to avoid disclosing exception information -->
          <serviceDebug includeExceptionDetailInFaults="false"/>
        </behavior>
      </serviceBehaviors>
    </behaviors>
  </system.serviceModel>
</configuration>

The client configuration file is as follows

<?xml version="1.0" encoding="utf-8" ?>
<configuration>
    <system.serviceModel>
        <bindings>
            <wsHttpBinding>
                <binding name="WSHttpBinding_IService1" closeTimeout="00:01:00"
                    openTimeout="00:01:00" receiveTimeout="00:10:00" sendTimeout="00:01:00"
                    bypassProxyOnLocal="false" transactionFlow="false" hostNameComparisonMode="StrongWildcard"
                    maxBufferPoolSize="524288" maxReceivedMessageSize="65536"
                    messageEncoding="Text" textEncoding="utf-8" useDefaultWebProxy="true"
                    allowCookies="false">
                    <readerQuotas maxDepth="32" maxStringContentLength="8192" maxArrayLength="16384"
                        maxBytesPerRead="4096" maxNameTableCharCount="16384" />
                    <reliableSession ordered="true" inactivityTimeout="00:10:00"
                        enabled="false" />
                    <security mode="Message">
                        <transport clientCredentialType="Windows" proxyCredentialType="None"
                            realm="" />
                        <message clientCredentialType="Windows" negotiateServiceCredential="true"
                            algorithmSuite="Default" establishSecurityContext="true" />
                    </security>
                </binding>
            </wsHttpBinding>
        </bindings>
        <client>
            <endpoint address="http://yyy.zzz.xxx.net/IISTest2/Service1.svc"
                binding="wsHttpBinding" bindingConfiguration="WSHttpBinding_IService1"
                contract="ServTest.IService1" name="WSHttpBinding_IService1">
                <identity>
                    <dns value="localhost" />
                </identity>
            </endpoint>
        </client>
    </system.serviceModel>
</configuration>

When I tried to access the service from client application, I got

SecurityNegotiationException

and details are

Secure channel cannot be opened because security negotiation with the remote endpoint has failed. This may be due to absent or incorrectly specified EndpointIdentity in the EndpointAddress used to create the channel. Please verify the EndpointIdentity specified or implied by the EndpointAddress correctly identifies the remote endpoint.

If I host the service on ASP .NET Dev server, it work well but if I host on IIS above mentioned error occurs.

Thanks,

Ram