I got this error on a recent CRM Install.
The reason for this error was because the name of the SQL Server machine had been changed after SQL Server 2012 had been installed.
So what I think basically happens when you install CRM it creates the default instance with the same name as the computer – server name.
So I believe the CRM 2011 installation was looking for the service name which is the same name as the server and couldn’t find one.
luckily there is a couple of good blogs written on this
http://mscrmuk.blogspot.co.uk/2008/10/sql-server-instance-name-must-be-same.html
The answer to this problem is to rename the instance name with some SQL commands I never come across before.
Open up an SQL Query window and type
sp_helpserver
This will give you the name of the current server instance and a bunch of other values (but don’t worry about those)
We now need to drop this name by running the SQL command below, You put the value of the incorrect server name in the quotes (where I have INCORRECT SERVER NAME”
SP_DROPSERVER “INCORRECT SERVER NAME”
now run the command below and the name in the quotes is the name of the server, don’t forget to add the comma local at the end otherwise the sql statement will error.
SP_ADDSERVER “DATABASE-1”, local
After you have done the change you can run
sp_helpserver
It should return the changed value.
You now need to run restart SQL Server and try the CRM install verification again
Hosk's Dynamic Blog 
Hosk,
Any luck getting CRM 2011 to work with SQL 2012 AlwaysOn AG??? I’m looking for some extra info about config, but I keep getting stonewalled.
Thanks,
John J.
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What does always on AG mean?
I installed CRM 2011 on SQL Server 2012, there were a few problems with the reporting server and I had to change the account that Reporting server was running from Network service to local admin or network local.
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AlwaysOn Availability Groups – A new “database mirroring on steroids” feature of SQL 2012.
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Any luck getting CRM 2011 and SQL Server AG working? I am getting the above error
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Here’s the Microsoft KB about configuring AG for CRM 2011.
http://technet.microsoft.com/en-us/library/jj822357.aspx
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I did follow that article, I got changed the connectionstring in MSCRM databases and changed the configdb registry key too. On the Crm server, I went into deployment manager, that is where the SQL Server field was pointing at the old server. Here is where the problem is. If I point it to SQL cluster name or to the Availability Group Listener name, it says instance name and computer name must be same. unless I point it to one of the nodes on the cluster, it keeps giving that error.
So, I guess if you can help me out here with what you entered in deployment manager for your CRM organization and got things working, it would be great. The reason I think entering a cluster node’s name is wrong is because if the server fails, there will be no ‘automatic’ failover. I will have to go in and change things manually..
Again, appreciate your help!
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Hi Unshaikh,
Did you ever find a resolution to this? I’m having the same exact same issue currently.
Thanks
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I did the steps in the blog post and that worked for me
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