On the App Controller server, open a browser and navigate to the app controller site (in this lab example my site URL is https://SCSM.SC.LAB). Click on the ‘Connect a Virtual Machine Manager server and…’ link.
In the Connect dialog box, enter a name for this connection. This name is displayed in the Name column of Clouds page. Add an optional description in the Description text box. In the Server name text box, enter the fully qualified domain name (FQDN) of the VMM management server. In the Port field, enter a port number that matches the port used by the VMM management server (default: 8100). Check Automatically import SSL certificates if you plan to copy files and templates to and from VMM cloud libraries.
NOTE: SSL certificates must be imported to the App Controller server in order to copy files or templates to and from VMM cloud libraries. In order for the import to succeed, users need to be part of all of the following roles: the local administrator of the App Controller server, local administrator of the VMM server, and VMM administrator.
Click OK to create the connection.
You may then be asked to select which VMM user role to use from the new VMM server connection for the current session.
NOTE: You may encounter the following error.
See the following TechNet thread: http://social.technet.microsoft.com/Forums/en-US/047ba638-81de-4870-a3fd-6f2390633685/app-controller-2012-sp1-rtm-connection-failed-with-virtual-machine-manager-2012-sp1-rtm.
Excerpt: “If System Center App Controller and the VMM Server are installed on separate servers, single sign-on does not work when App Controller is used. So, in UR1 for SC 2012 issue was fixed, but in SP1 present again. Solution is to disable SSO and use Basic Authentication or install App Controller on VMM server, but be aware 443 port VMM used for BITS.”
Here is a video walk through: