It is HIGHLY recommended to change the password in QC/ALM first, then in SQL-Server.
**Step 1**: Modify the ''td'' user password in QC/ALM Log in to Site Administration, click on DB Servers tab, then Application Lifecycle Management User Password (or Quality Center User Password) button. Type the new password that will later be reset in SQL-Server. When you change the ''td'' password in this way, it also (offers) changes the ''td'' password for all of your projects (updates their DBID.XML files too).
**Step 2**, you need to replace the ''encrypted'' password in siteadmin.xml file in the ALM deployment folder with the same value found in one of your project's newly updated DBID.xml files.
In your siteadmin.xml file opened for editing wtih notepad or notepad++, Replace the value of < DefaultUserPassword> in siteadmin.xml with the NEW value of from a project dbid.xml (that was just updated).
The default Path of siteadmin.xml is %ProgramData%HPALMwebappsqcbinWEB-INF
The default Path of dbid.xml is %ProgramData%HPALMrepositoryqc\
**Step 3:** Then in MS-SQL-Server:
1) Modify the 'td' user password in DB
2) Restart the ALM service or restart
the server machine.
When you start the HP ALM service, it reads the siteadmin.xml file to get the DB server URL, site admin database name (usually qcsiteadmin_db), and the ''td'' password (encrypted).
This process is not too bad, but it is NOT Trivial, meaning that most customers don't ever change the td password.