SCVMM 2012 SP1 – QuickStart deployment guide


The following document will cover a basic install of System Center Virtual Machine Manager 2012 SP1 at a generic customer.  This is to be used as a template only, for a customer to implement as their own pilot or POC deployment guide.  It is intended to be general in nature and will require the customer to modify it to suit their specific data and processes.

SVCMM can be scaled to match the customer requirements. This document will cover a two server model, where all SCVMM roles are installed on a single VM/Server, and leverage a remote SQL database server.

This is not an architecture guide or intended to be a design guide in any way.

  • Windows Server 2012 will be installed as the base OS for all platforms. All servers will be a member of the AD domain.
  • SQL 2012 will be the base standard for all SQL database services.

Server Names\Roles:

  • DB1          SQL 2012 Database Services
  • SCVMM    VMM Management Server and Console



High Level Deployment Process:

1.  In AD, create the following accounts and groups, according to your naming convention:

  • DOMAIN\scvmmsvc                 SCVMM Service Account account
  • DOMAIN\scvmmadmin            SCVMM RunAs account for managing hosts
  • DOMAIN\sqlsvc                        SQL service account
  • DOMAIN\SCVMMAdmins        SCVMM Administrators security group

2.  Add the “scvmmsvc” and “scvmmadmin” account to the “SCVMMAdmins” global group.

3.  Add the domain user accounts for yourself and your team to the SCVMMAdmins group.

4.  Install Windows Server 2012 to all server role servers.

5.  Install Prerequisites and SQL 2012.

6.  Install the SCVMM Server and Console.

7.  Deploy SCVMM Agent to Hyper-V hosts.


1.  Install Windows Server 2012 to all servers.

2.  Ensure server has a minimum of 4GB of RAM.

3.  Join all servers to domain.

4.  Install all available Windows Updates.

5.  Add the “DOMAIN\SCVMMAdmins” domain global group and the “DOMAIN\scvmmsvc” domain account explicitly to the Local Administrators group on each SCVMM role server.

8.  On the SCVMM server, install the Windows Assessment and Deployment Kit (ADK) for Windows 8  When you install this – install only the “Deployment Tools” and “Windows Preinstallation Environment” options.  This can take a significant amount of time depending on download speed.

9.  On the SCVMM server – install the SQL 2012 Native Client and the SQL 2012 Command Line Utilities from

10.  On the SQL database server, install SQL 2012.

  • Setup is fairly straightforward. This document will not go into details and best practices for SQL configuration. Consult your DBA team to ensure your SQL deployment is configured for best practices according to your corporate standards.
  • Run setup, choose Installation > New SQL server stand-alone installation…..
  • When prompted for feature selection, install ALL of the following:
    • Database Engine Services
  • Additionally, the product documentation for SCVMM states to install the management tools – complete:
    • Management Tools – Basic and Complete (for running queries and configuring SQL services)
  • On the Instance configuration, choose a default instance, or a named instance. Default instances are fine for testing and labs. Production clustered instances of SQL will generally be a named instance. For the purposes of the POC, choose default instance to keep things simple.
  • On the Server configuration screen, set SQL Server Agent to Automatic.  I prefer to use a service account for SQL, so I will set the Agent and DB Engine to run under my DOMAIN\sqlsvc account and provide the password.  This is optional.
  • On the Collation Tab – you can use the default of SQL_Latin1_General_CP1_CI_AS or choose another supported collation.
  • On the Account provisioning tab – add your personal domain user account or a group you already have set up for SQL admins. Alternatively, you can use the SCVMMAdmins global group here. This will grant more rights than is required to all SCVMM Admin accounts, but is fine for testing purposes of the POC.
  • On the Data Directories tab – set your drive letters correctly for your SQL databases, logs, TempDB, and backup.
  • Setup will complete.


Step by step deployment guide:

1. Install SCVMM 2012 SP1:

  • Log on using your domain user account that is a member of the SCVMMAdmins group.
  • Run Setup.exe
  • Click Install
  • Accept the license agreement and click Next.
  • Select:
    • VMM Management Server
    • VMM Console
  • On the Product Registration – input a product key for a licensed version, otherwise Eval will be installed with a timeout.  Click Next.
  • Accept or change the default install path and click Next.
  • If you get any Prerequisite errors – resolve them. If you get any warnings, understand them and click Next to proceed.
  • On the Database Configuration screen, enter in the name of your SQL database server and leave port blank. You can leave “use the following credentials” blank if you are installing to the local SQL server. You can enter credentials here to connect to a remote SQL server if your user account you are running setup as does not have enough rights over the instance to create a database. One the Instance Name – click the pull-down to select the instance you wish to install to.  Ensure “New Database” is checked and use the default name or change it to suit your naming standards. Click Next when this screen is complete.
  • On the Account Configuration screen, enter the domain account for the SCVMM service account that we created earlier (DOMAIN\scvmmsvc). Leave the default to store encryption keys locally for this simple deployment. Click Next.
  • On the Port configuration screen, accept defaults and click Next.    
  • On the Library configuration screen, change the library path or accept the default location, and click Next.
  • Click Install.
  • Setup will install all roles and complete.

2. Deploy an agent to an existing Hyper-V Host.

  • Open the System Center Virtual Machine Manager 2012 console.
  • Connect to the SCVMM server.
  • In the lower left hand pane of the console – select “Fabric”.
  • In the folder list – Right click “All Hosts” and choose “Create Host Group”.
  • Name your custom host group something like “Demo
  • Right click the Demo host group and choose “Add Hyper-V hosts and Clusters
  • On the Resource Location screen – choose the first bullet for a trusted AD domain computer.
  • On the Credentials screen, click Browse.
  • Select “Create Run As Account
  • On the General screen, enter a Name of “Hyper-V Host Administration Account
  • Input a DOMAIN\username of an AD account that has admin access to your Hyper-V servers. This account will be used to administer the Host and VM guests. For the purposes of the POC, we will use the DOMAIN\scvmmadmin account.
  • After inputting the password, and accepting the new account, we will return to the Credentials screen with our existing RunAs account shown. Click Next.
  • Type in the computer names of your Hyper-V servers that you wish to Manage. Ensure that the DOMAIN\SCVMMAdmins global group is a member of the local admins group on all Hyper-V servers so that we can manage them. Click Next.
  • Select all the discovered Hyper-V servers, and click Next.
  • Assign the discovered hosts to the “Demo” host group.
  • Click Next, Finish.
  • A job will be created to deploy the SCVMM agent to the Hyper-V hosts.


3.  Create host groups and clouds

4.  Configure WSUS for updates to Hosts

5.  Configure Logical Networks

6.  Connect with OpsMgr 2012 SP1:



    Comments (23)

    1. Kevin Holman says:

      @Ben –

      You need to deploy System Center App Controller – this is the self service portal for VMM private clouds, in addition to Windows Azure subscriptions.

    2. TomazicM says:

      Regarding my problem installing SCVMM SP1 agent on a perimeter host, where host is Windows Server 2008 R2 Enterpise and is not domain member, I found the solution (with a  little help from Sysinternals Process monitor).

      All I had to do was to add local account hostname$ (where hostname is name of the host) on perimeter host.

    3. TomazicM says:


      I have problem installing SCVMM SP1 agent on a perimeter host. Host is Windows Server 2008 R2 Enterpise and is not domain member.

      I get error 1603 in event log. Below is error from detailed log:

      MSI (s) (9C:D0) [14:51:42:942]: Doing action: AddLocalComputerToAdministratorsGroup

      Action 14:51:42: AddLocalComputerToAdministratorsGroup.

      Action start 14:51:42: AddLocalComputerToAdministratorsGroup.

      MSI (s) (9C:5C) [14:51:42:942]: Invoking remote custom action. DLL: C:WindowsInstallerMSI69FE.tmp, Entrypoint: AddLocalComputerToAdministratorsGroup

      CustomAction AddLocalComputerToAdministratorsGroup returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)

      Action ended 14:51:45: AddLocalComputerToAdministratorsGroup. Return value 3.

      MSI (s) (9C:D0) [14:51:45:236]: Machine policy value 'DisableRollback' is 0

      MSI (s) (9C:D0) [14:51:45:236]: Note: 1: 1402 2: HKEY_LOCAL_MACHINESoftwareMicrosoftWindowsCurrentVersionInstallerRollbackScripts 3: 2

      MSI (s) (9C:D0) [14:51:45:236]: Note: 1: 1402 2: HKEY_LOCAL_MACHINESoftwareMicrosoftWindowsCurrentVersionInstallerRollbackScripts 3: 2

      MSI (s) (9C:D0) [14:51:45:236]: No System Restore sequence number for this installation.

      MSI (s) (9C:D0) [14:51:45:236]: Unlocking Server

      Action ended 14:51:45: INSTALL. Return value 3.

      Any advice?

      1. Tony Gedge says:

        I have seen the same issue when invoking the VMM installer from PowerShell. If I run the installer with the same command line from the command shell instead, it works fine. I’m not sure why this is the case.

    4. Hi, Kevin

      can we have a SQL 2012 cluster to host all System Center 2012 databases, separated by instances?



    5. Kevin Holman says:

      Technically – yes – that would work for database engines, for any applications that supported a clustered database, and some things can share instances where it makes sense.  

      However, you still need multiple standalone reporting (SSRS) servers in that case… one for SCOM, one for ConfigMgr, and one for SCSM.

      As to designing System Center databases, it really comes down to how big each infrastructure needs to scale out to.  For a lab environment – I deploy 3 SQL servers, each with its own SSRS.

      DB1 – OpsMgr, VMM, Orchestrator databases.  SSRS for SCOM.

      DB2 – SCSM databases.  SSRS for SCSM.

      DB3 – SCCM databases.  SSRS for SCCM.

    6. Anonymous says:

      This is a good start but you're missing a ton of information like steps 3, 4, 5.

    7. Jess Coburn says:

      Thanks Kevin.  This was a great quickstart guide!

    8. Septic Tank says:

      Great post,

      Any more tips for the last section..

      3.  Create host groups and clouds

      4.  Configure WSUS for updates to Hosts

      5.  Configure Logical Networks

    9. Ahmed Alsahli says:

      Dear Kevin,

      I have installed DC and SQL servers… While installing service manager 2012, exactly in the last step, i have faced the following error message:

      “An error occurred while executing a custom action:_CreateDatabase

      This upgrade attempt has failed before permanent modifications were made.

      Upgrade has successfully rolled back to original state of the system. Once

      the correction are made, you can retry upgrade for this role.”

      Any advice?


    10. ML49448 says:

      Failed to create the group. Maybe this portion was not explicit. Seemed fine until job failed. Could have more detail on setting up. Good start though. Now I have to see if I really needed to add a local admin entry of the domain account…

    11. nm_viiv says:

      Hello Guys,

      I have a clustered CSV Hyper-V platform made of 2 physical servers running Windows Server 2012.

      I have installed SCVMM 2012 SP1 on a virtual machine hosted in the cluster and running windows server 2012.

      SCVMM installation has completed successfully and with no errors. then I came to add the hosts into the fabric, the 1st host has completed successfully but the 2nd server is continuing to fail giving the error:

      Error 2917: Virtual Machine Manager cannot process the request because an error occurred while authenticating <server_name>. Possible causes are:

      1- the specified user name or password are not valid (same username and password was used for the 1st server and it completed successfully)

      2- The service Principle name (SPN) for the remote computer name and port does not exist (I did not understand this error honestly)

      3- The client and remote computer are in different domain and there is not a two-way full trust between the two domains. the network path was not found (0x80070035)

      Anyone can help on this case? I know this error is very general but I need to get out of this.


    12. Natesh says:

      Great article…

      My exisiting privite cloud is running on RC. I have setup SCVMM 2012 with app. controller in the new RTM.

      I need some help in understanding how to move my hyperv cluster to this new SCVMM 2012 setup?

    13. Chris says:

      I am looking at this as a replacement for Vmware lab manager. LM is basically used for student to log in and do their labs online in different OS's. What other recommendations do you have on completing this?

    14. AdinE says:

      Hello All, as an FYI I have created some detailed guides on SCVMM installation if it will help anyone.

      I haven’t created any guides yet on configuration, but plan to do so.

      I have posted the guides on my blog here:…/01-installation-guides
      and have also posted them on this site as well:…/index.php.

      Hope it helps.

    15. theben says:

      Hi to all,

      Today I downloaded the SCVMM VM, installed SCVMM and SQL, all running well.

      Main issue, I need to show the self service web console.

      Tried to find it and to install it, its hidden in c:program filesMicrosoft system center 2012vmmsetupmsimsdeploy1033 webdeploy

      But this is not working, it installs something, but I do not get an web environment.

      Can anyone help me how to solve this?

      Kind regards,


    16. Riz says:

      I already have SCVMM 2012 running. Is there a SP1 upgrade path or do i need to run SCVMM with SP1 again

    17. Jose says:

      Installing the VMM Management Server piece requires Windows Server 2012? I'm reading the documentation on TechNet and it says Server 2012 and Windows Server 2008 R2 are supported. I'm trying to install SCVMM Management Server and Console on 2008 R2 and the VMM management server is greyed out. Am I missing something?

    18. Kevin Holman says:

      @Jose – You might be.  🙂

      VMM 2012 RTM supports Windows Server 2008R2.

      VMM 2012 SP1 requires Windows Server 2012.

      VMM 2012 R2 requires Windows Server 2012 or Windows Server 2012 R2.…/dn281935.aspx

    19. Wei Tingjiu says:

      I'd like to know why we need so many account in"AD, create the following accounts and groups, according to your naming convention:

         DOMAINscvmmsvc                 SCVMM Service Account account

         DOMAINscvmmadmin            SCVMM RunAs account for managing hosts

         DOMAINsqlsvc                        SQL service account

         DOMAINSCVMMAdmins        SCVMM Administrators security group


      why and can we reduce them?

    20. rajneesh1 says:

      When ever i try to install VMM 2012 SP1 onto one of the nodes I receive the following error "Creation of the VMM resource group SCVMMNCTX failed. Ensure that the group name is valid, and cluster resource or group with the same name does not exist, and the group name is not used in the network."

      Setup first installs and then rolls back with above error as the last screen.

      The VMM server log contains the following errors

      MSI (s) (F8:E0) [12:38:09:496]: Executing op: CustomActionSchedule(Action=RollbackNPIVMofNPIVMethods,ActionType=1089,Source=BinaryData,Target=CAQuietExec,CustomActionData="C:WindowsSysWOW64wbemwmic.exe" /NAMESPACE:\rootwmi class MSFC_FibrePortNPIVMethods DELETE )

      MSI (s) (F8:C4) [12:38:09:499]: Invoking remote custom action. DLL: C:WindowsInstallerMSIABC3.tmp, Entrypoint: CAQuietExec

      CAQuietExec:  ERROR:


      Description = Not found


      CAQuietExec:  Error 0x80041002: Command line returned an error.

      CAQuietExec:  Error 0x80041002: CAQuietExec Failed

      MSI (s) (F8:E0) [12:38:10:269]: Executing op: ActionStart(Name=MofcompNPIVMof,,)

      CustomAction RollbackNPIVMofMapping returned actual error code 1603 but will be translated to success due to continue marking

      MSI (s) (F8:E0) [12:38:10:270]: Executing op: CustomActionSchedule(Action=MofcompNPIVMof,ActionType=1025,Source=BinaryData,Target=CAQuietExec,CustomActionData="C:WindowsSysWOW64wbemmofcomp.exe" "C:Program FilesMicrosoft System Center 2012Virtual Machine ManagersetupNPIV.mof").

      Any advice how to get this resolved

      Note: The scvmm service account is explicitly added to local admin group on both the nodes, also it has been provided full control permission on the cluster.

      And finally the cluster dns name SCVMMCLUS has full permissions on the AD OU Servers where it is located.

      For DKM, the container is already created and scvmm service account has full permissions.

    21. Amitabh says:

      Oyai Hello
      What this Microsoft understand of them yaar,why their application create havoc for all admin
      This SCVMM 1st never told its is so irritating when downloading their prerequisite Windows Assessment and Deployment Kit (ADK) it say harmfull for server its disinfectant and not launching the application to install what a person can do Microsoft don’t have
      R&D to test and than release the installer.
      Now anyone can tell how this SCVMM R2 can install because their Hyper-v never support routing.
      When they are going not interfere in all products whether or wheter not it going to work but Microsoft need to enter in everywhere

    22. scvmmnewbie says:

      Is it possible to make a single hyperv box member of the domain of witch the dc runs on tthat hypervisor? It is for a homelab and I would like to run all of it at 1 box.

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