P2V convert button greyed out

Hello 

 

Testing a P2V conversion using BE2012 sp2 on win2008R2. We have taken a successfull SDR enabled backup of a physical machine and brought that tape to our DR site and on our DR site we have ESX5.0\VCenter server available to achieve P2V conversion. We did a inventory\Catalog  and it added the entry of machine on the servers tab. But when we double click the backed up server and try to click on convert button it is greyed out. I would like to know that, do we need the backed up machine alive to perform P2V.