If you set the database(s) to use Server instead of ODBC, the system wants to create a System 32bit ODBC entry.  If you launch for the first time with non-administrative / power user permissions, the ODBC entry will likely not be created.
Try the following:
1. Set databases to Server (SQL connection)
2. From the client, launch Database Setup - AS ADMINISTRATOR
3. Click the Verify icon
4. Select a database to verify

If the above fails, there is an issue with the PC and workstation setup should be run again (as administrator).  If it connects and scans tables, the system will have created a 32bit server-level ODBC connection in the system section of the ODBC admin snap in and you should be good.

Hi, 

ODBC is no problem, cannot connect for sage only when choose server at database setup

You should be using the Server name, not a manually created DSN. Run Sage "as adminstrator" one time and the correct ODBC DSN will be created.  

Hello Jay, this is another installation, and I was not able to use the Server name. Instead, the connection to the SQL database was established using the static IP address. We can PING the Servers using both IP addresses and Server Names though. I would like to know where to point the local IT in order to get the settings to use the Server Name instead.

Hello Jay, this is another installation, and I was not able to use the Server name. Instead, the connection to the SQL database was established using the static IP address. We can PING the Servers using both IP addresses and Server Names though. I would like to know where to point the local IT in order to get the settings to use the Server Name instead.

If you can ping it, you can use it

Thank you, Jay.