Recommended settings for the SQL Server database management system for it to work well with ArcSDE are as follows:
Leave AUTO_CREATE_STATISTICS and AUTO_UPDATE_STATISTICS enabled.
Setting these parameters to ON allows SQL Server to generate and update statistics automatically.
Disable AUTO_SHRINK and AUTO_CLOSE.
AUTO_SHRINK shrinks database files automatically when more than 25 percent of the file contains unused space.
AUTO_CLOSE causes the database to automatically close and shut down when the last remaining user disconnects from the database. This process uses resources. Since user connections for ArcSDE are frequently started and ended by the user, having AUTO_CLOSE on would negatively impact performance.