If you decide to install System Center 2012 Service Manager (SCSM 2012) for your private cloud environment, primary requirement is a supported SQL Server. To be able to work with Service Manager, the following SQL components must be installed;
But SCSM 2012 does not like SQL Server default instance collation configurations. As you know, during a default SQL Server 2008 setup progress, your SQL collation will be configured with SQL_Latin1_General_CP1_CI_AS. If you don’t change default collation,
during SCSM 2012 installation you will get a warning message;
If you use default collation on your SQL Server, it is not possible to support multiple languages in Service Manager. I mean if you later decide to support for multiple languages you have to use different collation and that means you have to reinstall SQL
On SCSM 2012 technet page, you can find supported OS locales and collations.