Cannot configure BizTalk 2013 BAM on a separate SQL server

During the installation of BizTalk 2013 the configuration of the BAM tools threw the following error:


2013-03-11 12:19:28:5454 [Error] BAMTools Error configuring
Error executing bm.exe with tracing enabled. (Microsoft.BizTalk.Bam.CfgExtHelper.Utility)
Error executing process: C:\Program Files (x86)\Microsoft BizTalk Server 2013\Tracking\bm.exe (Microsoft.BizTalk.Bam.CfgExtHelper.Utility)
Microsoft (R) Business Activity Monitoring Utility Version 3.10.229.0Copyright (C) Microsoft Corporation. All rights reserved.ERROR: Encountered error while executing command on SQL Server "".A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server)The system cannot find the file specified (Microsoft.BizTalk.Bam.CfgExtHelper.Utility)
[2013-03-11 12:19:28:0545  Error BAMConfigWizExt] d:\bt\4338\private\source\monitoring\configuration\extention\helpers.h(1641): FAILED hr = 80004005

[2013-03-11 12:19:28:0561  Error BAMTools] d:\bt\4338\private\source\monitoring\configuration\extention\toolscfg.h(593): FAILED hr = 80004005

[2013-03-11 12:19:28:0561  Error BAMConfigWizExt] d:\bt\4338\private\source\monitoring\configuration\extention\bamconfigwizext.cpp(251): FAILED hr = 80004005

I found out that this only happens if you do not have the SQL server databases on the local BizTalk server. After some research I found other people were having this issue as well. They resolved it by configuring BAM alerts at the same time. These are the steps to take:

On the BizTalk server install the following:

1) SQL Server Native Client (sqlncli.msi)
2) SQL Server 2005 Management Objects Collection (SQLServer2005_XMO.msi)
3) SQL Server 2005 Notification Services (SQLServer2005_NS.msi)

Now configure BAM Tools and BAM Alerts and the installer will not throw any errors.