If you are trying to connect remotely to your database and are unable to view the list of databases, you need to take the following steps:
Step 1: In Object Explorer, click Databases
Step 2: Display Object Explorer Details (F7) or View > Object Explorer Details
Step 3: Right click the column headers and de-select "Collation"
Step 4: Refresh Databases.
This will prevent SSMS from trying to connect to the other databases on the server which is the cause of the error