UnsatisfiedDependencyException: Error creating bean with name 'entityManagerFactory'

Well, you're getting a java.lang.NoClassDefFoundError. In your pom.xml, hibernate-core version is 3.3.2.GA and declared after hibernate-entitymanager, so it prevails. You can remove that dependency, since will be inherited version 3.6.7.Final from hibernate-entitymanager.

You're using spring-boot as parent, so no need to declare version of some dependencies, since they are managed by spring-boot.

Also, hibernate-commons-annotations is inherited from hibernate-entitymanager and hibernate-annotations is an old version of hibernate-commons-annotations, you can remove both.

Finally, your pom.xml can look like this:

<?xml version="1.0" encoding="UTF-8"?>
<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
    xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
    <modelVersion>4.0.0</modelVersion>

    <groupId>org.elsys.internetprogramming.trafficspy.server</groupId>
    <artifactId>TrafficSpyService</artifactId>
    <version>0.1.0</version>

    <parent>
        <groupId>org.springframework.boot</groupId>
        <artifactId>spring-boot-starter-parent</artifactId>
        <version>1.2.3.RELEASE</version>
    </parent>

    <dependencies>
        <!-- Spring -->
        <dependency>
            <groupId>org.springframework.boot</groupId>
            <artifactId>spring-boot-starter-web</artifactId>
        </dependency>

        <dependency>
            <groupId>org.springframework.boot</groupId>
            <artifactId>spring-boot-starter-cloud-connectors</artifactId>
        </dependency>
        <dependency>
            <groupId>org.springframework.boot</groupId>
            <artifactId>spring-boot-starter-jdbc</artifactId>
        </dependency>
        <dependency>
            <groupId>org.springframework.boot</groupId>
            <artifactId>spring-boot-starter-data-jpa</artifactId>
        </dependency>

        <dependency>
            <groupId>org.eclipse.persistence</groupId>
            <artifactId>javax.persistence</artifactId>
            <version>2.0.0</version>
        </dependency>

        <!-- Hibernate -->
        <dependency>
            <groupId>org.hibernate</groupId>
            <artifactId>hibernate-entitymanager</artifactId>
        </dependency>
        <dependency>
            <groupId>org.hibernate</groupId>
            <artifactId>hibernate-validator</artifactId>
        </dependency>

        <dependency>
            <groupId>javax.servlet</groupId>
            <artifactId>jstl</artifactId>
        </dependency>
        <dependency>
            <groupId>commons-dbcp</groupId>
            <artifactId>commons-dbcp</artifactId>
        </dependency>
        <dependency>
            <groupId>commons-pool</groupId>
            <artifactId>commons-pool</artifactId>
        </dependency>

        <!-- MySQL -->
        <dependency>
            <groupId>mysql</groupId>
            <artifactId>mysql-connector-java</artifactId>
        </dependency>
    </dependencies>

    <properties>
        <java.version>1.7</java.version>
    </properties>

    <build>
        <plugins>
            <plugin>
                <groupId>org.springframework.boot</groupId>
                <artifactId>spring-boot-maven-plugin</artifactId>
                <executions>
                    <execution>
                        <goals>
                            <goal>repackage</goal>
                        </goals>
                    </execution>
                </executions>
            </plugin>
        </plugins>
    </build>

    <repositories>
        <repository>
            <id>spring-releases</id>
            <url>https://repo.spring.io/libs-release</url>
        </repository>

        <repository>
            <id>codehaus</id>
            <url>http://repository.codehaus.org/org/codehaus</url>
        </repository>
    </repositories>
    <pluginRepositories>
        <pluginRepository>
            <id>spring-releases</id>
            <url>https://repo.spring.io/libs-release</url>
        </pluginRepository>
    </pluginRepositories>

</project>

Let me know if you have a problem.