This option allows machines with limited space to maintain their logs on device fragments that are separate from their data. Use this option only when you put log and data on the same logical device. Although this is not recommended practice, it may be the only option available on machines with limited storage, especially if you need to get databases back online following a hard disk crash.
You will still be able to dump your transaction log, but if you experience a media failure, you will not be able to access the current log, since it is on the same device as the data. You will be able to recover only to the last transaction log dump, and all transactions between that point and the failure time will be lost.
In the following example, the log and data are on separate fragments of the same logical device:
create database littledb on diskdev1 = "4M" log on diskdev1 = "1M" with override
The minimum database size you can create is the size of model.