That article is dangerously wrong.
You don't need to create a shared folder to host an application in IIS. You just need to make sure the
IIS_IUSRS
group has read permissions on the folder.
And setting your application pool to run as
LocalSystem
is extremely dangerous. The slightest mistake in your application, or any unpatched security vulnerability in the framework or in any library that you're using, will allow an attacker to have unrestricted access to your server. There is almost never a need to do this, and it should only ever be done on tightly restricted applications by someone who absolutely knows what they're doing.
Quite frankly, I'm surprised and disappointed to see such poor advice from
@ProudMonkey[
^].