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Although IBM already supports a free open source database engine called Cloudscape which provides a migration path to DB2, IBM feels that a free starter edition of DB2 could attract developers that would otherwise use an open source solution. A free DB2 version could also possibly prevent potential IBM customers from adopting the proprietary database solutions distributed by IBM's chief competitors in the database market. Microsft and Oracle both offer their own free starter editions: Microsoft SQL Server 2005 Express Edition, and Oracle Database XE.
I consider Free with a Capital F to mean Free as in Freedom, not for free. While it is OK for IBM to offer their DB2 gratis, I think the Free with capital F is misleading. It still is a proprietary product.
It seems IBM is hedging its bets between FOSS infrastructure and proprietary middleware. If they really thought they could survive on consultancy and services, they'd bring an open source DB to the fore and they would be backing it 100%. (I said a DB, not DB2. IBM might not be the sole proprietor of the technology in DB2 and hence not be able to make it Free Software).
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It seems IBM is hedging its bets between FOSS infrastructure and proprietary middleware. If they really thought they could survive on consultancy and services, they'd bring an open source DB to the fore and they would be backing it 100%. (I said a DB, not DB2. IBM might not be the sole proprietor of the technology in DB2 and hence not be able to make it Free Software).