IQService is required by the Active Directory connector for all provisioning, and for reading certain fields from a user's entry, including Terminal Services and Lync attributes.
If you don't need this functionality, the application server will not require IQService to be running, and you can leave the IQService Host and Port fields blank when defining the application. Specifying incorrect values for these fields will cause the "Test Connection" process to erroneously report a failure to connect to the application.
