“Systems Management Server Setup cannot continue because of the following error: Setup cannot upgrade the SMS database. Contact your SQL administrator”

I’m trying to upgrade my SMS 2003 SP2 Central Site to SP3. However, the installation fails with a dialog box stating:

Systems Management Server Setup cannot continue because of the following error: Setup cannot upgrade the SMS database. Contact your SQL administrator.

Looking in the C:\SMSSETUP.LOG it reports:

SQL error <[08S01][0][Microsoft][ODBC SQL Server Driver]Communication link failure

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“Systems Management Server Setup cannot continue because of the following error: Setup cannot upgrade the SMS database. Contact your SQL administrator”

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