Symptoms
Is it possible to install K2 blackpearl when installation account does not have local administrator rights on the SQL server?
Diagnoses
In terms of of SQL server rights K2 installation account requires dbcreator and securityadmin rights (those are server wide roles in SQL server) there is no need for K2 installation or K2 service account to have local administrator rights on SQL server machine. Unless SQL server is installed on the same server where K2 components are being installed.
K2 installation does require local administrator rights on all servers where you installing K2 Components, normally on SQL you don't install any K2 components (unless it is scaled down test environment), SQL just hosts K2 database.
Please refer to the following section of our documentation for details about rights required for K2 installation account:
http://help.k2.com/onlinehelp/k2blackpearl/icg/current/webframe.html_before_installationaccount.html
Refer to this section for details on Service Account Requirements and Permissions:
http://help.k2.com/onlinehelp/k2blackpearl/icg/current/webframe.html_Before_ServiceAccounts.html
Additionally in case of strict security policies installation account can be provisioned/enabled only temporary for the period of K2 installation and be disabled after installation is complete.
Resolution
In terms of of SQL server rights K2 installation account requires dbcreator and securityadmin rights (those are server wide roles in SQL server) there is no need for K2 installation or K2 service account to have local administrator rights on SQL server machine unless it additionally hosts K2 components, which is normally not the case.