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Normally when the SQL agent installs it defines the SQL servername as the client hostname.

Occasionally (like in ATL01) a customer changes their SQL server name so it doesn't match the host name. This prevents the Tivoli SQL agent from connecting to the SQL server for backup/restores. If you try to query the server for database names during installation and you receive the following you may need to also change the sqlserver name:
ACO5424E Could not connect to SQL server; SQL server returned: [Microsoft][ODBC SQL Server Driver][Shared Memory]Invalid connection. [Microsoft][ODBC SQL Server Driver][Shared Memory]ConnectionOpen (Invalid Instance()). Microsoft SQL-DMO (ODBC SQLState: 08001) (HRESULT:0x80040000)

First verify the sqlserver name is correct/incorrect from the command line:
tdpsqlc q sql /sqlserver=WHAT_YOU_SUSPECT

The above command should reply with the SQLServer name and Version. If it doesnt, you need to get the MS SQL DBA to give you the correct SQLServer name and then try the below steps. To set the Tivoli SQL agent to the correct sqlservername, enter:
tdpsqlc set sqlserver=CORRECT_SQL_SERVERNAME

Test the backup with the command line:

tdpsqlc backup * f /sqlserver=CORRECT_SQL_SERVERNAME

(where * is either ALL databases or a specific known database name) Then verify with an immediate action schedule.