Errors during creating a new organisation

Creating a new organisation in CRM may result in an error with the following error „System.IO.IOException: The network name cannot be found.“

The log was showing the following exception:

06:54:35|   Info| Creating a new organization
06:54:36|   Info| Installer Start: OrganizationCreator.Install: operation New
06:54:36|   Info| Executing Install action: Microsoft.Crm.Tools.Admin.AddOrganizationToConfigurationDatabaseAction
06:54:36|   Info| VerifyIfOrganizationExists Returned: False for OrgId: 66a631a6-5e2e-e811-90fe-005056a247dc
06:54:36|   Info| CrmAction execution time; AddOrganizationToConfigurationDatabaseAction; 00:00:00.3390229
06:54:36|   Info| Executing Install action: Microsoft.Crm.Tools.Admin.CreateDatabaseAction
06:54:36|   Info| Attempting to copy database file:PathSource=C:\Microsoft Dynamics CRM\LangPacks\1033\sql\8,DbFileName=mscrm8.mdf,m_isBuildDb=False,m_sqlServerName=SQLDB,DbFilesPath=E:\MDF1\DYNAMICS,DBName=SQLDB_MSCRM.mdf
06:59:58|   Info| CrmAction execution time; CreateDatabaseAction; 00:05:22.2725139
06:59:58|  Error| Installer Complete: OrganizationCreator - Error encountered
06:59:58|  Error| Exception occured during Microsoft.Crm.Tools.Admin.OrganizationCreator: Error.ActionFailed Microsoft.Crm.Tools.Admin.CreateDatabaseAction
InnerException:
System.IO.IOException: The network name cannot be found.

   at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
   at System.IO.File.InternalCopy(String sourceFileName, String destFileName, Boolean overwrite, Boolean checkHost)
   at Microsoft.Crm.Setup.Database.Helpers.CopyDatabaseFile(String sourcePath, String sourceFileName, Boolean isBuildEnvironment, String sqlServerName, String destinationFilePath, String destinationFileName, String& copyDestinationPath)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.AttachDB(ReleaseInfo r)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.installInternal(Boolean isInstall)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.Install(Int32 languageCode, String configurationFilePath, Boolean upgradeDatabase, Boolean isInstall)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.Install(Int32 languageCode, String configurationFilePath, Boolean upgradeDatabase)
   at Microsoft.Crm.Tools.Admin.InstallDatabaseAction.Do(IDictionary parameters)
   at Microsoft.Crm.Setup.Shared.CrmAction.ExecuteAction(CrmAction action, IDictionary parameters, Boolean undo)

06:59:58|   Info| Setting organization state.  New state = Failed
06:59:59|  Error| Create new Organization (Name=66a631a6-5e2e-e811-90fe-005056a247dc, Id=SQLDB) failed with Exception:
System.Exception: Error.ActionFailed Microsoft.Crm.Tools.Admin.CreateDatabaseAction ---> System.IO.IOException: The network name cannot be found.

   at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
   at System.IO.File.InternalCopy(String sourceFileName, String destFileName, Boolean overwrite, Boolean checkHost)
   at Microsoft.Crm.Setup.Database.Helpers.CopyDatabaseFile(String sourcePath, String sourceFileName, Boolean isBuildEnvironment, String sqlServerName, String destinationFilePath, String destinationFileName, String& copyDestinationPath)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.AttachDB(ReleaseInfo r)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.installInternal(Boolean isInstall)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.Install(Int32 languageCode, String configurationFilePath, Boolean upgradeDatabase, Boolean isInstall)
   at Microsoft.Crm.Setup.Database.DatabaseInstaller.Install(Int32 languageCode, String configurationFilePath, Boolean upgradeDatabase)
   at Microsoft.Crm.Tools.Admin.InstallDatabaseAction.Do(IDictionary parameters)
   at Microsoft.Crm.Setup.Shared.CrmAction.ExecuteAction(CrmAction action, IDictionary parameters, Boolean undo)
   --- End of inner exception stack trace ---
   at Microsoft.Crm.Setup.Shared.CrmAction.ExecuteAction(CrmAction action, IDictionary parameters, Boolean undo)
   at Microsoft.Crm.Setup.Shared.Installer.Install(IDictionary stateSaver)
   at Microsoft.Crm.Tools.Admin.OrganizationOperation.Install(IDictionary stateSaver)
   at Microsoft.Crm.Tools.Admin.OrganizationCreator.Install(IDictionary stateSaver)
   at Microsoft.Crm.Tools.Admin.OrganizationOperation.Execute()
   at Microsoft.Crm.Tools.Admin.OrganizationCreator.Execute()
   at Microsoft.Crm.Tools.Admin.CreateOrganizationInstaller.Create(ICreateOrganizationInfo organizationInfo)
06:59:59|   Info| Found the older table DBUpdateInstallInfo_V5, updating new table and deleting
06:59:59|   Info| GetDBUpdateRevisionThresholdForServer(): Threshold = 8.2.0002.0136.
07:13:13|  Error| SQL Server does not exist or access denied. Connection string (Data Source=SQLDB\DYNAMICS;Initial Catalog=SQLDB_MSCRM;Integrated Security=True;Connect Timeout=60)System.Data.SqlClient.SqlException (0x80131904): Cannot open database "SQLDB_MSCRM" requested by the login. The login failed.
Login failed for user 'DOMAIN\DynamicsService'.
   at System.Data.ProviderBase.DbConnectionPool.TryGetConnection(DbConnection owningObject, UInt32 waitForMultipleObjectsTimeout, Boolean allowCreate, Boolean onlyOneCheckConnection, DbConnectionOptions userOptions, DbConnectionInternal& connection)
   at System.Data.ProviderBase.DbConnectionPool.TryGetConnection(DbConnection owningObject, TaskCompletionSource`1 retry, DbConnectionOptions userOptions, DbConnectionInternal& connection)
   at System.Data.ProviderBase.DbConnectionFactory.TryGetConnection(DbConnection owningConnection, TaskCompletionSource`1 retry, DbConnectionOptions userOptions, DbConnectionInternal oldConnection, DbConnectionInternal& connection)
   at System.Data.ProviderBase.DbConnectionInternal.TryOpenConnectionInternal(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)
   at System.Data.SqlClient.SqlConnection.TryOpenInner(TaskCompletionSource`1 retry)
   at System.Data.SqlClient.SqlConnection.TryOpen(TaskCompletionSource`1 retry)
   at System.Data.SqlClient.SqlConnection.Open()
   at Microsoft.Crm.CrmDbConnection.InternalOpenWithRetry(IDbConnection connection, String descriptionText)
   at Microsoft.Crm.CrmDbConnection.GetCreateAndOpenConnection()
   at Microsoft.Crm.CrmDbConnection.Open()
   at Microsoft.Crm.Tools.Admin.OrganizationController.IsOrganizationDatabaseAvailable(String connectionString)
ClientConnectionId:f31e0ee1-f9ac-4cb8-bb12-aef5c0bc0d13
Error Number:4060,State:1,Class:11

As the wizard told me before, that everything is correct, I started to search.

The solution to the problem is, that the deployement manager tries to copy the initial database file to the server and then attaches this file to the sql server.
The user, which is running the deployment manager has to be “sql administrator” and also in the “local administrator group”. This is only needed during the provisioning of a new organization.

After the organization is successfully created, you can remove the user from the “local administrator group”.