Step-by-step guide to install VMM 2016

This blog post will show you what needed steps you need to do when installing Virtual Machine Manger 2016.



First we need to have at least one Hyper-V host (in this article we have fresh 2016 server which is already joint to domain). Then I have the following VMs running on the host: Domain Controller, VM for VMM and VM for the SQL.

You can refer Microsoft article for the Plan VMM installation.

First we need to create some service accounts and groups:
DOMAIN\scvmmsvc VMM Service Account account
DOMAIN\scvmmadmin VMM RunAs account for managing hosts
DOMAIN\sqlsvc SQL service account
DOMAIN\SCVMMAdmins (SG_FS_VMM_Admins) VMM Administrators security group

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

I will use SQL Server 2016, Enterprise, Standard (64-bit) version for the SQL database. You can refer following MS article for the supported SQL versions.

Remember to open needed ports from the SQL server:


Let´s start from the SQL installation.
When you install SQL Server, select at least the Database Engine Services and Management Tools – Complete features. I recommended to use “SQL_Latin1_General_CP1_CI_AS” collation.

Management Tools you can install in 2016 version from here.

Next we need to create DKM (Distributed key management) container for the VMM.
To ensure that VMM retains encrypted data across moves, we can use distributed key management to store encryption keys in Active Directory.

Start adsiedit (adsiedit.msc) on the domain controller and create container.

Remember that the account with which you’re installing VMM needs Full Control permissions to the container in AD DS. The permissions must apply to this object, and to all descendant objects.

As I´m going to install my VMM with the VMM service account (scvmmsvc) I need to grant needed permissions to that container.

You can copy the Distinguished Name from the container for later use (VMM installation). In my case it is “CN=vmmdkm,OU=VMM,OU=Management,DC=v-slab,DC=local”.

Let´s move on the VMM server. First we need to install all the
Windows ADK for Windows 10
– select the Deployment Tools and Windows Preinstallation Environment features

Command line utilities for SQL Server 2014 or SQL Server 2012
Microsoft  ODBC Driver 11 for Microsoft SQL Server – Windows
Microsoft Command Line Utilities 11 for Microsoft SQL Server


Microsoft® SQL Server 2012 Native Client
Microsoft® SQL Server 2012 Command Line Utilities

After installation start the VMM installation:

Add your product key

Browse your existing SQL server:

Add earlier created service account and password. Store keys to earlier created DKM.

Use default ports:

Installation completed:

Next you can start the using VMM 2016, enjoy!


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