The Username parameter is a pointer to a constant null-terminated character string that specifies the account name to use ...

The Username parameter is a pointer to a constant null-terminated character string that specifies the account name to use when connecting to the domain controller. The string must specify either a domain NetBIOS name and user account (for example, \"REDMOND\\user\") or the user principal name (UPN) of the user in the form of an Internet-style login name (for example, \"[email protected]\"). If this parameter is NULL, the caller's context is used. Blank password is passed by using an empty string 
Password and Username must use a high authentication level (i.e. no less than RPC_C_AUTHN_LEVEL_PKT_PRIVACY) when they connect to winmgmt (i.e. in the call to obtain the IWbemServices interface) or SetProxyBlanket on their IWbemServices ptr. If they are local to winmgmt then this is not a concern because their authentication level is as good as RPC_C_AUTHN_LEVEL_PKT_PRIVACY as well as their client request never goes over the wire to get to the winmgmt. 
If Password and Username are left null, the provider does not care. 
If the provider determines that the authentication level is too low and a Password or Username has been specified then WBEM_E_ENCRYPTED_CONNECTION_REQUIRED will be returned.