STSADM command results in null reference error

When STSADM command returns immediately with "Object reference not set to an instance of an object” error, it is typically due to the inadequate permission the user account running the command has. The account should have the following:

• belongs to the Administrators group on the server where the command is running.
• is a farm administrator
• has full access (sysadmin) to the SQL Server Instance (no need to have access to the server on which SQL Server runs on).

This problem often happens in production environments where probably no user accounts have the broad access levels needed as described above. Because user accounts are tightly managed and servers deployed in different silos and managed by different teams in many production environments.