In our existing FIM 2010 R2 implementation, we used the default collation of SQL 2008 R2, which is SQL_Latin1_General_CP1_CI_AS.

However, reading some articles, I got the impression that SQL server will need to be installed with Latin1_General_100_CI_AS collation for installing System Center 2012. I also read that FIM Service database will need to be in the same collation (i.e. Latin1_General_100_CI_AS). This means we will need to rebuild the SQL server for FIM service.

However, reading the following article, I get a different impression. As long as the collation across all the SQL servers is the same, we should be good. Also, it is actually recommended to use SQL_Latin1_General_CP1_CI_AS rather than Latin1_General_100_CI_AS. In fact, The SCOM data warehouse installer will always install the data warehouse with SQL_Latin1_General_CP1_CI_AS regardless of the SQL Server collation.

http://blogs.technet.com/b/servicemanager/archive/2012/05/24/clarification-on-sql-server-collation-requirements-for-system-center-2012.aspx

Can anybody please confirm the requirement?