Managed to do it via jTDS driver
javaaddpath('/Applications/MATLAB_R2011a.app/jtds/jtds-1.2.5.jar')
conn = database('StudyWarehouse', 'user', 'pass', 'net.sourceforge.jtds.jdbc.Driver', 'jdbc:jtds:sqlserver://server:1433/StudyWarehouse');
But still curious how to make the microsoft driver work