How to create a private cloud step by step with System Center part 2: VMM Setup

In the second part of this series I will show you the basic installation of VMM, remember this is a test environment so you will need to separate SQL role and scale VMM to suit your needs.


  • I always create a SCAdmin account for my labs, so I have an administration account for all my System Center Servers, you should make it local admin in your servers and your admin groups, I usually do all mi installation and update tasks with this user.
  • VMMadmins for your VMM administrators – Local admin in VMM server
  • VMMaction to manage my Hyper-V hosts – Local administrator in all Hyper-V nodes to manage.
  • VMMservice to execute VMM local services – Local administrator in the VMM server.
  • SQLservice for SQL services.

Installing SQL 2012 with Sp2:

  • It’s pretty straight forward to install SQL, so I will go through with the default I use for my test setup, in a production environment you should request advice from your DBA to follow best practices.
  • Because this is a local install you won’t need to disable your firewall or apply any rules to it.
  • Follow the setup until you get to the Setup Role page and select SQL Server Feature installation.
  • Select Database Engine and Management Tolls in the Feature Installation Page.
  • Leave the default instance for the installation to make it easy.
  • In Server Configuration  put the SQL Server Agent to Automatic and change the accounts to use your SQLservice account.
  • Check the collation is set to SQL_Latin1_General_CP1_CI_AS.
  • Add your SCadmin user to the SQL Server Administrators in the Database Engine Configuration page.
  • And press install when you are asked to.

Installing VMM 2012 R2

  • Open the install media and open setup.exe if the install page doesn’t show when you double click.
  • Click the install link.
  • Select VMM Management Server and the Console will be selected by default, click next.
  • Insert your product key and click next.
  • Follow the setup making the selections that make more sense to you.
  • In the prerequisites page you will see an error for the deployment tools not being installed, follow this link because the one in the setup will not work.
  • Run the installer and just install Deployment Tools and Windows Preinstallation Enviroment (Windows PE)
  • Close the wizard when the installation is completed.
  • Go back to the VMM setup and click the Verify Prerequisites Again button, click next.
  • In database configuration, leave the defaults and just select your default instance form the drop down combo, click next.
  • Select Domain Account and put your VMMservice credentials in DOMAIN/User format.
  • We need to create the container for the VMM key to be stored for future recovery, update or if we are doing a cluster HA for VMM installation.
    • Go to your domain controller (DC01) and run ADSI Edit.
    • Remember that the container should be created in the same domain as your install user.
    • Right click over ADSI edit in the left pane and select connect, click ok with the defaults.
    • Double click in default naming context and in your domain name.
    • Right click in your domain name and select New and Object.
    • Select Container and click next.
    • In value use VMMK and click next.
    • Click finish.
    • Right click in the new CN=VMMK created item and select properties.
    • Select security, click Advanced.
    • In the Advanced Security window click Add
    • Click Select a principal and look for your installation account, click ok.
    • Give the following permissions: Read, Create all child objects and Write all properties.
  • Now that we have our container let´s go back to our VMM server and to the setup.
  • Check the box for Store my keys in Active Directory, it should be in this format, for example, if my domain is, it should be CN=VMMK,DC=CONTOSO,DC=com, click next.
  • Leave the defaults in ports and click next.
  • Leave the defaults for the library and click next.
  • Click installs

In the next part we will prepare networking for WDS.

Comments (5)

  1. Anonymous says:

    Today I decided to start a series of post while I’m building my home lab from scratch again, in this

  2. Anonymous says:

    A very nice set of articles from Manuel Puron , System Center Premier Field Engineer (PFE) from Mexico

  3. Anonymous says:

    I’m adding an index post so it’s easier for you to browse through this series of posts. How to create

  4. dsf says:

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