It is recommended that the DS-Client database data files reside on a different physical device than the log files – and if possible, on a different disk controller (unless using different, more sophisticated integrity strategies, like RAID subsystems, database replication, standby servers, etc). Microsoft recommends: "Do not place the transaction log file or files on the same physical disk with the other files and file groups”.

This will maximize the performance due to parallel disk I/O. In case that disk is damaged, it will improve the chances to recover the database to the state it was at the point of disk failure.

The database installation script automatically detects the Default Data Directory and the Default Log Directory for the particular SQL Server (or instance) where it is installed. However, if the defaults are empty, the installation script will create both the data and log files in the same location (i.e. the one where the "master" database resides).

Before running the DS-Client installation to upgrade to a newer version, it is recommended to reset the Default Data Directory and the Default Log Directory to a different path on different physical drives as mentioned above. You can do this using SQL Enterprise Manager: select the SQL Server or Instance where the DS-Client database will be installed > Right-click > Properties > Database Settings.