KB ID 0000726
Problem
Seen today while installing Veeam 6.5 Backup and Recovery on Windows Server 2008 R2
The setup was unable to install new instance of Microsoft SQL server. Make sure this server meets minimum system requirements, or try installing it manually.
Solution
1. Press Windows Key+R > appwiz.cpl {enter} > Uninstall ALL references to SQL Server and Veeam (Warning: Obviously if the server is using SQL, SQL Express or MSDE for another reason then DON’T DO THIS).
2. Download and install SQL Express (SQLEXPR_x64_ENU.exe). Run the install and select default instance (accept the default name). I set the database for mixed mode authentication but you will probably be OK with Windows authentication.
3. This time it should complete without error.
4. Now run the Veeam setup again, and it will detect the already installed instance and run through without error.
Related Articles, References, Credits, or External Links
Veeam Backup and Recovery Download
Veeam Availability Suite Download
Veeam Backup For Office 365 Download