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Although it is not recommend it as a best practice, you can configure Exchange to save disk space by enabling circular logging. Circular logging allows Exchange to overwrite transaction log files after the data that the log files contain has been committed to the database.
In Exchange 2010, circular logging is disabled by default. By enabling it, you reduce drive storage space requirements. However, without a complete set of transaction log files, you can’t recover any data more recent than the last full backup. Therefore, in a normal production environment, circular logging isn’t recommended.
In the standard transaction logging used by Exchange 2010, each database transaction is written to a log file and then to the database. When a log file reaches one megabyte in size, it’s renamed and a new log file is created. Over time, this results in a set of log files. If Exchange stops unexpectedly, you can recover the transactions by replaying the data from these log files into the database. Circular logging overwrites and reuses the first log file after the data it contains has been written to the database.
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