TFS Application Tier Will Use Different Hardware Than It's Using Right Now (RTM)

To do a hardware-swap (migration) upgrade of Team Foundation Server

 Double check. Verify that the operating system and hardware meet the requirements for the new version of Team Foundation Server. New for this version of TFS, you must use a 64-bit server if you use a server operating system.

Determine the service account you will use for Team Foundation Server. By default, TFS uses Network Service, but you can also use a domain account. In most cases, you should use the same account you used for the previous installation, or consider using Network Service.

There’s more information on MSDN: System Requirements for Team Foundation Server, or Accounts Required for Installation of Team Foundation Server.

 Set up SQL Server. You’re going to install all the SQL Server features that TFS requires on the same server where you’ll eventually run TFS.

For more information: Setup SQL Server for TFS

  Set up SharePoint. If you don’t skip the portal setup, you have two options for how to deal with SharePoint:

• Use the same SharePoint site you have right now.
  If your old SharePoint server is still up and running, you can continue to use it. Go to the SharePoint server and uninstall old extensions, and then install the new extensions before you upgrade TFS. If SharePoint and the previous version of TFS were on the same computer, you have to uninstall the entire TFS 2010 application tier. In the new upgraded configuration, the only TFS component on the SharePoint server will be the TFS extensions for SharePoint.
  
  For more information: Use the same SharePoint site that you have right now
  
  

• Move SharePoint to a new server.
  New for this version of TFS, you can install SharePoint Foundation  using the TFS extensions for SharePoint wizard. The TFS wizard will install a fresh copy of SharePoint using the installation of SQL Server you just set up, and then configure the TFS extensions for the new installtion of TFS. After you install SharePoint, you’ll detach its content database to prepare for the migration of the data from your previous SharePoint installation in step 4, Back up and Restore Data.
  
  For more information: Move SharePoint to New Hardware for TFS
  
  

 Back up and Restore Data. New for this version of TFS, you can use custom backup and restore tools to manage your data. First you’re going to back up your data, including the encryption key on the report server. Next, you’re going to restore your data to the SQL Server instance you set up in step 2. With the restore complete, you’ll use the SQL Server Reporting tool to restart the report server database, restore its encryption key, and then verify access to the report server. If you installed SharePoint, you’ll use a SharePoint command line tool to attach and upgrade your content database.

For more information, see: Back up and Restore Data for TFS.

  Upgrade TFS. Run the Team Foundation Server install from the product DVD and then use the Upgrade Configuration wizard to upgrade your installation.

For more information: Run TFS upgrade wizard.

Next Step: Set up a new build machine

After you upgrade the application tier, you might want to install the new build service. You can’t use TFS 2010 build service with Team Foundation Server 2012, but you can install the new build service side-by-side on the same server as the TFS 2010 build service.