Update Manager fails with “SQL installation was not successful”

Issue: Installing VMWare Update Manager with embedded Microsoft SQL 2012 database fails with error “SQL installation was not successful”

Cause: Your server must meet the system requirements of Microsoft SQL 2012 Express.  If you’re running Windows 2008 R2 you must have Service Pack 1.  If you’re running Windows 2008 then you need Service Pack 2.

Additional: If you attempt to install SQL 2012 Express manually by downloading from Microsoft, it will give more error output.  In my case it complained that I did not have Windows 2008 R2 SP1 installed.