Julien,  my issue was very similar, although different because I use Veeam.  Here's what I posted on the Veeam forums - hopefully it helps you It looks like the solution to this is to uninstall the "SmVssProvider" which, when you run "vssadmin list providers," is listed as: Provider name: 'SmVssProvider'  Provider type: Hardware  Provider Id: {24e4e8a3-69cb-4370-8b7b-c5276cd49765}  Version: 10.84.02 That service initiates the premium add-on Snapshot service that you can buy for the MD line through Dell. If you didn't buy it, you don't need this provider. (as far as I understand it at least) To uninstall this provider, navigate to the VDS-VSS uninstall folder in the MD Storage folder. By Default it is at: C:\Program Files (x86)\Dell\MD Storage Software\VDS_VSS\Uninstall Modular Disk Storage Hardware Provider (*BE CAREFUL here and double check your path. There is more than one uninstaller with a similar path and name.*)  Once in that folder, launch the "Uninstall Modular Disk Storage Hardware Provider.exe" Note that the uninstaller is very rudimentary - there's no GUI or confirmation that it completed. The folder and service will just disappear. This will remove the "SmVssProvider" and the related Windows Service: "Modular Disk Storage Hardware Provider" (SMPROVIDER1.EXE - Same as SmProv~1.exe). In my case, the "Modular Disk Storage Hardware Provider" service was set to "Automatic" start, although it was not running, so I was unable to uninstall the provider without stopping I/O or causing any disruption to my VMs. There was no reboot request either. YMMV though so proceed with caution. 
On my Windows 2012 Hyper-V Failover cluster, using 2 R710 Servers with iSCSI and MD3220I SAN. During backup (Altaro Hyper-V Backup), I am getting these 3 errors from both servers during the nightly backup. Service has been set to restart. "The Modular Disk Storage Hardware Provider service terminated unexpectedly. It has done this 1 time(s). The following corrective action will be taken in 60000 milliseconds: Restart the service. ** EventID: 7031" "Faulting application name: SMPROV~1.EXE, version: 10.84.26.2, time stamp: 0x50405699 Faulting module name: ntdll.dll, version: 6.2.9200.16579, time stamp: 0x51637f77 Exception code: 0xc0000374 Fault offset: 0x00000000000ebd59 Faulting process id: 0x414 Faulting application start time: 0x01ce9f773f388ae3 Faulting application path: C:\PROGRA~2\Dell\MDSTOR~1\VDS_VSS\provider\SMPROV~1.EXE Faulting module path: C:\Windows\SYSTEM32\ntdll.dll Report Id: d9128602-0c14-11e3-940c-dc509918130b Faulting package full name: Faulting package-relative application ID: ** EventID: 1000" "An attempt was made to issue a command to a password protected storage system and the correct password is not known. ** EventID: 5004"  I have contacted Altaro and their support has never seen these errors and they claim they are just doing a VSS backup, nothing special. My Windows 2008 R2 Hyper-V cluster has never seen these errors for over 2 years. Anybody help here???  
Dell Modular Disk Storage Hardware Provider service terminates during VSS Backup