I don’t want to go through a step by step procedure to upgrade from your current version of Veeam Backup & Replication to the latest version, but I would like to go through the procedure that I have followed in my environment and hope you will be benefit.
1. Stop Veeam Services.
2. Backup SQL Database
3. Upgrade SQL Express 2005 to SQL Express 2008 R2 by initiating this in the CMD SQLEXPR_x64_ENU.exe /action=upgrade
4. Once it’s done, start veeam Services.
5. Upgrade Enterprise Manager first if you are using it.
6. Upgrade Veeam Backup & Replication.
7. Launch Veeam Console and you will be prompt it with agent upgrade to upgrade the Repository Servers and Proxy Servers.
8. Just make sure everything is back to normal, jobs, logs, configuration run a job test to make sure everything is fine.