When you submit a statement like
libname <name> <engine> <quoted string>;
SAS expects the quoted string to be a physical file name. What you want to do is probably something like
libname <name> <engine> <engine-option>=<quoted string>;
in your actual case something like
libname sdmlib SQLSVR complete='Provider=SQLOLEDB.1;Integrated Security=SSPI;Persist Security Info=False;Initial Catalog=abcde;Data Source=datasourcenameab;Use Procedure for Prepare=1;Auto Translate=True;Packet Size=4096;Workstation ID=wsid;Use Encryption for Data=False;Tag with column collation when possible=False';
or possibly, use the PROMPT= or NOPROMPT=. The COMPLETE option display a dialog box if some options are missing; the PROMPT options always displays options in a dialog box, the NOPROMPT never displays a dialog box (but just fails if the options are not complete).