You can connect to SQL Server using SQL authentication and instance name. That combination will not work out of the box in FactorySQL since we are missing a translator. However, you can get it to work by altering the SQLServer.XML. Here are the steps:
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Edit the SQLServer.xml in C:\Program Files\Inductive Automation\FactorySQL\database, remove the “,{port}” (excluding the quotes of course) in the line Data Source={server},{port}; Database… and Save.
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Use the following parameters:
Name: any name
Connection Type: Native Connection
Driver Type: SQL Server
Translator: SQL Server
Host: IPAddress\SQLEXPRESS
Port: Leave Blank
Database: db name
Extra Connection Parameters: leave blank
Username: SQL auth user
Password: SQL auth password
That combination should work. The {port} in the connection path is what is limiting you.