Thank you for using our services.
To address this issue I want to say that when setting up your project you have to grant the ASPNET worker process full permissions to your App_Data folder. Can you please see if you have done it and if you can do it on your production server. You should also check the permissions on your database server.
I hope that this will help you solve your issues. Please feel free to contact us if you have any questions.
All the best,
the Telerik team