OK. I was thinking webapp user authentication. You mean how the webapp itself authenticates to the database. So Tomcat Realms wouldn't apply.
I'm out of practice on the quirks of configuring MS SQL Server, but I don't think that
you should have had to change anything at all on the Tomcat side. The difference between the two authentication methods is whether the connection is authenticated via user definitions within SQL server or within the Windows security environment (local machine or LAN authentication).
I don't recommend using NTLM authentication for this connection myself. For security purposes, it's better to use a userid/password that is solely for the purposes of database connection and not tied to other system resources.
But as far as setup goes, the jtds driver is a type 4
JDBC driver.. Meaning it's 100% pure
Java and contains no DLLs, native-code classes or OS-specific code in it. I can say that confidently, because my webserver's Linux and any Windows-only restrictions would have prevented me from being able to use jtds. The exception is that the SSO option
does use a special DLL from JTDS, and SSO does only run under Windows. Other than that, the only difference between a SQL Server authenticated connection and a domain (NTLM) authenticated connection is that you must supply the domain name as part of the connection URL.