This was occurring because a SQL client odbc driver is missing on the server.
The UIM installation installs a 'SQL Server Native Client 11.0' driver, but this did not occur.
You can check if the driver is installed by doing the following:
1. Open your 'Administrative Tool' gui.
2. Open the 'ODBC Data Source (64 bit)' icon.
3. Select the 'Drivers' tab.
4. Check to see if the 'SQL Server Native Client 11.0' is listed. If the driver is missing you can manually run the sqlncli.exe install.
It should be in the following folder where your UIM server was installed: \Nimsoft\install\setup\win\SQLNativeClient11