The first step in your installation will be to install Microsoft SQL Server. Installations may vary slightly, depending on the SQL Server version, what components are already installed on the server, and what options you choose to install.
Whether the Dynamics GP SQL Server will reside on a new dedicated server or another existing server, it is recommended that a new SQL Server instance be installed for Dynamics GP. This will allow for the settings needed by Dynamics GP to not interfere with settings that may be different for other applications using the SQL Server. It will also allow for better control and easier maintenance. With a separate SQL Server instance if the SQL Server services need to be restarted for Dynamics GP, other applications on the server will not be affected.