Make sure that your operating system is fully patched and that is has been rebooted before you start the installation of SQL Server 2016. Now, follow these steps:

1. Insert the SQL Server 2016 media and start the SQL server's setup. In the SQL Server Installation Center, click on Installation and click on New SQL Server stand-alone installation…
2. The Setup Support Rules will start and will identify any problems that might occur during the SQL server's installation. When the operation is complete, click on OK to continue.
3. In the Product Key step, enter the product key that ships with SQL server license and click on Next to continue.
4. The next step is the License Terms step, which is where you check the I accept the license terms checkbox if you agree with the license terms. Click on Next to continue.
5. The SQL Server installation will verify whether there are any product updates available from the Microsoft Update service. Check the Use Microsoft Update to check for updates (recommended) checkbox and click on Next to continue.
6. Select the Include SQL Server product updates checkbox and click on Next to continue:

7. Next is the Install Setup Files step, which initializes the actual installation. When these tasks have finished, click on Install to continue.
8. Verify that all of the rules have passed in the Install Rules step of the SQL Server installation process. Resolve any warnings or errors and click the Re-run button to run the verification again. If all of the rules have passed, click on Next to continue.
9. In Feature Selection, choose the SQL Server features that you would like to install. System Center Data Protection Manager requires the following:
   • Database Engine Service
   • Full-Text and Semantic Extractions for Search
   • Reporting Services – Native

10. Click on Next to continue:

11. Verify the Installation Rules step, resolve any errors, and click on Next to continue.
12. In the Instance Configuration step, select Named instance and type in a suitable name for your SQL Server instance. Click on Next to continue:

13. In the Server Configuration step, type in the credentials for the dedicated service account you would like to use for this SQL Server. Switch the Startup Type to Automatic for the SQL Server Agent. When all of the credentials have been filled in, click on the Collation tab:

14. In the Collation tab, make sure that SQL_Latin1_General_CP1_CI_AS is listed in the Database Engine Configuration. If not, then click on the Customize… button to choose the correct collation and then click on Next to continue.
15. The next step is the Database Engine Configuration step. Enter the authentication security mode, administrators, and directories. In the Authentication Mode section, choose Windows Authentication mode. In the Specify SQL Server administrators section, click the Add... button and add the DPM Admins group into Active Directory:

16. Click on the Data Directories tab as well as the TempDB tab to verify that all of your SQL Server configurations point to a dedicated disk. Click on Next to continue.
17. In the Reporting Services Configuration step, under the Reporting Services Native Mode, choose Install and configure and click on Next to continue.
18. Verify the configuration in the Ready to Install step and click on Install to start the installation.
19. The Installation Progress step will show you the current status of the installation process. When the installation has completed, SQL Server 2016 Setup will show you a summary of the Complete step. That is the final step page of the SQL Server Server 2016 installation wizard.
20. Click on the Close button to end SQL Server 2016 Setup.