In this guide, I will go through the installation of SQL Server 2016 with SP1.  This can be a separate standalone server or could be collocated with the System Center product for smaller installations or Dev/Test/POC environments.
For example:
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This guide is suitable for:
  • System Center Operations Manager 2016
  • System Center Configuration Manager 2016
  • System Center Virtual Machine Manager 2016
  • System Center Orchestrator Manager 2016
  • System Center Service Manager 2016

Prerequisites
Create a Service Account in Active Directory, it doesn’t need any special permissions.  In this article it will be called Srv-SQL
I have a Server 2016 machine joined to the domain with a static IP Address called CC-HO-SQL1.  We will be installing SQL Server 2016 Standard Edition with SP1.

The Installation
Insert the SQL Server Media.
Click Install and then click New SQL Server stand-alone installation or add features to an existing installation
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Enter your Product Key or click Specify a free edition for a 180 free trial
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Click I accept the licence terms and click Next
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Select Microsoft Update if you wish and click Next
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Acknowledge the prerequisites and click Next.
(Note: You may need to open up the SQL ports in the Windows Firewall depending on your environment.  Use this guide if necessary https://technet.microsoft.com/en-GB/library/ms175043(v=sql.110).aspx)
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Select the following features:
  • Database Engine Services
  • Full-Text and Semantic Extractions…..
  • Report Services – Native
Then click Next
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On the Instance Configuration screen you may change the Instance Name if you wish to something like SCOM but MSSQLSERVER is more than suitable.  Click Next
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Now enter your SQL Service Account details
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They should look like this, note set the SQL Server Agent to Automatic.  Once complete click the Collation tab.
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Click Customize
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Click the SQL collation, used for backwards compatibility radio button and select SQL_Latiin1_General_CP1_CI_AS Collation and click OK
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Click Next
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On the Database Engine Configuration screen click Add Current User and then click Add… and enter your SQL Service Account from AD.
You can also change the Database and Log file locations by clicking the Data Directories Tab if you wish.  Once done click Next
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On the Reporting Services Configuration Screen ensure Install and configure is selected and click Next
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Click Install on the summary screen
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Once the installation has completed successfully click Close
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For those of you who are “Eagle Eyed” you may of noticed we didn’t install the SQL Server Management Studio.  This is because its now a separate download and installer for SQL Server 2016.  Open your favourite browser and navigate to https://msdn.microsoft.com/en-us/library/mt238290.aspx.  Download the latest version that is in GA (General Availability) and run the setup file.
Click Install and the installation will start
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Once the installation is complete click Close
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Now click Start SQL Server 2016 > SQL Server Management Studio and ensure it opens correctly and can connect to your SQL Instance.
On the Connect to Server screen click Connect
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You can see here everything is fine.
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You can now use this SQL Server to install your System Center products