The Exchange transaction logs are 5 MB files that are used to ensure database integrity. When handling the storage of transaction log files, it is best to have separate mirrored disks that are dedicated for the storage of these files. The main advantage of this is that in the event of a disk failure the other mirrored disk will contain current logs that are necessary for the operation of the Exchange database.
The transaction log files tend to grow rapidly, especially if circular logging is disabled. This uses up a lot of disk storage space. Disabling circular logging, however, has its advantages, especially in the event that any of the Exchange database becomes corrupted. To reduce buildup of these logs, perform daily backups of the Exchange database.
If the Exchange server contains one disk that handles both the transaction logs and the Exchange database, and this disk becomes full DO NOT DELETE THE TRANSACTION LOGS. Perform a full database backup that will then flush out the old log files.
source: Adesh Rampat
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