PowerPivot connection failure - "The following system error occurred: The application has failed to start because its side-by-side configuration is incorrect. Please see the application event log or use the command-line sxstrace.exe tool for more deta

Applies to: SQL Server 2012, PowerPivot for SharePoint, in a SharePoint Server 2010 deployment

This error is a system error that appears incorrectly in the case of a PowerPivot data connection failure. The error occurs when you are using a client application, such as Excel or a Reporting Services report, to connect to a PowerPivot workbook through its HTTP address on a SharePoint site.

A more informative error will be provided in a subsequent service pack or release.

In the mean time, if you get this error when using a PowerPivot workbook, investigate the following (actual) underlying causes to find the resolution:

Workbook URL does not exist at the specified URL.

Resolution is to replace the URL in the connection UI wtih a valid URL.

Workbook does not contain PowerPivot data.

Resolution is to open the workbook on a computer that has Excel 2010 and the SQL Server 2012 PowerPivot for Excel add-in. Click the PowerPivot tab, and then click PowerPivot Window. If no data appears in the tabs of the PowerPivot Window, the workbook is not a PowerPivot workbook.

SharePoint permissions are insufficient.

Resolution is to check your SharePoint permissions. You must have Contribute level of permission or above to use a PowerPivot workbook as a data source in another workbook or report.