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It kind of depends on whether you are using a single-site or multi-site system. In a single-site system the "Content Administrator Privileges" allows Content Administrators the option to add and remove users in addition to their other privileges. In a multi-site system, this functionality is disabled and only system administrators can add and remove users.
The logic behind this setup is that, on a multi-site system, a particular user can belong to multiple sites, with different user rights and license levels on each site. This setup makes the user list a list with system-wide application rather than a list that effects only a particular site. Anything system-wide is controlled by the system administrator, while content administrators are tied to a particular site. Content administrators in multi-site systems can still manage groups, projects, workbooks, and data connections within their site.
If a particular user needs the privileges to add or remove users, this user can be made a system administrator. There is currently no way to allow a content administrator to add or remove users on a multi-site system.
Hopefully this provides some insight for you!
Ok Tracy, let me make sure I understand this...
The only time a Content Admin cannot work with Users (Add/Delete/Edit) is when Tableau Server becomes multi-site (more than one Site), correct?