cannot connect to the specified SQL Server instance

I am trying to install Microsoft System Center 2012 R2 Virtual Machine Management.

I am getting the following error:

Setup cannot connect to the specified SQL Server instance.
Ensure that the server name, isntance name, and, if speceified, port number are correct. If you are installing VMM remotely, ensure that remote connections are set up correctly, and then try Setup again.
I have installed the 
Microsoft® SQL Server® 2008 R2 Command Line Utilities
but have not set up any SQL Server instances. 

how should i proceed?


Edit:
The followign fields are configured: Server Name: The name of the machine i am using Port: <empty>
Use the follow ...