Regarding the BI development environment for Microsoft technology, BIDS, named Business Intelligence Development Studio, is the must-have tools for Visual Studio as it will add SSIS/SSAS/SSRS development resources such as specific project type for BI, variety of designers, tools, and wizards to work with these specific project. Just like other software packages from Microsoft, there are compatibility issues.
BIDS has many versions. The latest 2 versions are 2012 and 2014. BIDS 2012 contains SSIS 2012/SSAS 2012/SSRS 2012, and BIDS 2014 contains SSIS 2014/SSAS 2014/SSRS 2014. BIDS 2012 includes SQL Server version 2012, and BIDS 2014 includes SQL Server version 2013. If your working DB is SQL Server 2012, you should use Visual Studio 2012 with BIDS 2012. If your working DB is SQL Server 2013, you can use Visual Studio 2014 with BIDS 2014.
The issue is here, you can't use BIDS 2012 and Visual Studio 2012 if you want to use SQL Server 2013. The reason is BIDS 2012 SSIS part will deploy final applications only based on SQL Server 2012, which will not work with SSIS 2014 and SQL Server 2013.
Also, if you want to install SQL Server 2012 locally along with Visual Studio 2012 Express and BIDS 2012, the installation order is important as well. You need to install Visual Studio 2012 Express and BIDS 2012 at first, and BIDS 2012 will install included SQL Server 2012. After this, you can then install your own SQL Server 2012. If you don't follow the order, for example, you installed SQL Server 2012 at first, the BIDS 2012 installation will fail because the included SQL Server 2012 will not override the pre-installed SQL Server 2012.
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