Article ID: 2679704
When deploying a SQL DAC pack (Data Tiered Application) using System Center 2012 Virtual Machine Manager, if the name of the SQL instance in the DAC pack is blank then the service template will fail with the following error:
When deploying a DAC pack or creating a SQL server using a Service template, the SQL instance must match the instance name specified when you created the generalized VHD (Syspreped). Otherwise the service template will fail with Instance Not Found.
Edit the DAC pack to specify the correct instance name or edit the Service template to match the instance name of the original VHD.
(http://go.microsoft.com/fwlink/?LinkId=151500)for other considerations.