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Starting with Veeam Backup & Replication 12, all new deployments will use PostgreSQL as the default database engine to host the configuration database. PostgreSQL does not have the limitations discussed in this article.
Existing deployments upgraded from Veeam Backup & Replication 11a or older will continue using Microsoft SQL. After upgrading, those deployments may be manually migrated to PostgreSQL.
Note: The database engine used by Veeam Backup & Replication and the Veeam Backup Enterprise Manager server that manages it must match. If an existing Veeam Backup & Replication deployment will be migrated from Microsoft SQL to PostgreSQL, and it is managed by Veeam Backup Enterprise Manager, the configuration database of Veeam Backup Enterprise Manager must be migrated first.
The best way to resolve the issue would be to upgrade your SQL Server to a Standard or Enterprise edition or move Veeam Backup & Replication database to another SQL Server with the required edition. The procedure for configuring Veeam Backup & Replication to use a new SQL Server connection is described in the Migrate using SQL Backup section of the following KB article: KB1889: How to move the Veeam Backup & Replication or Enterprise manager to another server
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