For an unknown reason, we noticed the AirWatch Background Processor Service wasn’t running at all. When we attempt to start it, it failed with two events logged in the event log:

I then worked with VMware AirWatch technical support and created/modified a registry key to increase the default time-out value for the service control manager.

1. Click Start. Then Run. Then type regedit and click OK.
2. Locate and then click the following registry subkey:
   HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control
3. In the right pane, locate the ServicesPipeTimeout entry.
   Note If the ServicesPipeTimeout entry does not exist, you must create it. To do this, follow these steps:
   • On the Edit menu, point to New, and then click DWORD Value.
   • Type ServicesPipeTimeout, and then press ENTER.
4. Right-click ServicesPipeTimeout, and then click Modify.
5. Click Decimal, type 180000, and then click OK. This value represents the time in milliseconds before a service times out.
6. Restart the Server

I asked if this was a known issue with VMware AirWatch, and he referred me to the Microsoft KB instead except the value we set is 3 times more:

A service does not start, and events 7000 and 7011 are logged in Windows Server 2003, Windows Server 2008, and Windows Server 2008 R2