From the Tivoli Storage Manager Server installation directory, issue the following command:
dsmserv removedb TSMDB1
If it succeeds, you can retry creating an instance. If it fails, we will need to try method 2.
For the second method, is to drop the database from DB2.
set db2instance=server1 db2stop force db2start db2 drop database TSMDB1
For the third method is to do an uncatalog of the database.
set db2instance=server1 db2 uncatalog database tsmdb1
Delete an instance
/opt/tivoli/tsm/db2/instance/db2idrop tsminst1