Hi Surymani,
The answer is: no, your system performance won't be improved if you shrink your log file. You have probably other bottlenecks. For this I suggest to check out some resources:
-> I/O specific performance issues:
Bad I/O Performance on SQL Server?
-> Tune your SQL Server database:
Tune your SQL Server SAP Database
-> SAP Knowledge Base Article:
1744217 - MSSQL: Improving the database performance
The fact that the DISK that hosts your transaction log is left with only 10MB may indicates that:
- your transaction log is getting filled too much faster;
- you may not be backing up your transaction log with regular frequency;
- maybe your application design is causing this: a custom code might be causing this.
If you backup your transaction log with high frequency, you shouldn't worry about this because it is most likely that your transaction log won't get full.
Incorrect transaction log file sizing combined with low frequency transaction log backup may lead to get -9002 errors or get your disk full.
How often do you take your transaction log backups? 30 min? 1 hour? 6 hours?