SCOM 2012 SP1 Upgrade

Hello,
I have a SCOM 2007 R2 CU7 server that I upgraded to SCOM 2012.  I am running Windows Server 2008 R2 SP1 and SQL Server 2008 R2 SP2.  I tried twice to upgrade it to SCOM 2012 SP1 and it failed both times.  In the OpsMgrSetupWizard.log file,
I see this error:
: Threw Exception.Type: System.Data.SqlClient.SqlException, Exception Error Code: 0x80131904, Exception.Message: Incorrect syntax near 'MERGE'. You may need to set the compatibility level of the current database to a higher value to enable this feature.
See help for the SET COMPATIBILITY_LEVEL option of ALTER DATABASE.
Incorrect syntax near the keyword 'AND'.
Incorrect syntax near the keyword 'THEN'.
[10:58:04]: Error: :StackTrace:   at System.Data.SqlClient.SqlConnection.OnError(SqlException exception, Boolean breakConnection)
   at System.Data.SqlClient.TdsParser.ThrowExceptionAndWarning()
   at System.Data.SqlClient.TdsParser.Run(RunBehavior runBehavior, SqlCommand cmdHandler, SqlDataReader dataStream, BulkCopySimpleResultSet bulkCopyHandler, TdsParserStateObject stateObj)
   at System.Data.SqlClient.SqlCommand.RunExecuteNonQueryTds(String methodName, Boolean async)
   at System.Data.SqlClient.SqlCommand.InternalExecuteNonQuery(DbAsyncResult result, String methodName, Boolean sendToPipe)
   at System.Data.SqlClient.SqlCommand.ExecuteNonQuery()
   at Microsoft.EnterpriseManagement.OperationsManager.Setup.DBConfigurationHelper.DBConfiguration.RunSqlCommandsList(IEnumerable`1 sqlCommands)
[10:58:04]: Error: :RunStandardScripts failed with the following exception: : Threw Exception.Type: System.Reflection.TargetInvocationException, Exception Error Code: 0x80131604, Exception.Message: Exception has been thrown by the target of an invocation.
[10:58:04]: Error: :StackTrace:   at System.RuntimeMethodHandle._InvokeMethodFast(IRuntimeMethodInfo method, Object target, Object[] arguments, SignatureStruct& sig, MethodAttributes methodAttributes, RuntimeType typeOwner)
   at System.RuntimeMethodHandle.InvokeMethodFast(IRuntimeMethodInfo method, Object target, Object[] arguments, Signature sig, MethodAttributes methodAttributes, RuntimeType typeOwner)
   at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture, Boolean skipVisibilityChecks)
   at System.Delegate.DynamicInvokeImpl(Object[] args)
   at Microsoft.EnterpriseManagement.SetupFramework.ActionEngine.Action.Run(String displayStringNamespace, ProgressData progressData, Func`2 progressDelegate)
   at Microsoft.EnterpriseManagement.SetupFramework.ActionEngine.InstallStep.Run(String displayStringNamespace, ProgressData progressData, Func`2 progressDelegate)
[10:58:04]: Error: :Inner Exception.Type: System.Data.SqlClient.SqlException, Exception Error Code: 0x80131604, Exception.Message: Incorrect syntax near 'MERGE'. You may need to set the compatibility level of the current database to a higher value
to enable this feature. See help for the SET COMPATIBILITY_LEVEL option of ALTER DATABASE.
Incorrect syntax near the keyword 'AND'.
Incorrect syntax near the keyword 'THEN'.
After both failed upgrades, I had to re-install SCOM 2007.  How can I get the upgrade to complete?  The prerequisites have been installed.

So try to change the SQL database Compatibility Level to SQL 2008 (100):
1. Open SQL Server Management Studio
2. Connect to the SQL server hosting the Operations Manager Databases
3. Expand Databases, Right Click on OperationsManager and click properties
4. Click Options, Change the Compatibility level: drop down to SQL Server 2008 (100), Click OK
5. Right Click on OperationsManagerDW and click properties, Click Options
6. Change the Compatibility level: drop down to SQL Server 2008 (100), Click OK
Niki Han
TechNet Community Support

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