disk space increasing on local drive (even though MS SQL is used)

disk space increasing on local drive (even though MS SQL is used)

I have set EventLog Analyzer to use MS SQL, so I would assume the disk space should not increase on the machine where EventLog Analyzer is running.  But there are two folders with significant disk size.  One is c:\ManageEngine\EventLog\Archive and the other one is c:\ManageEngine\Eventlog\server\default\indexes\hot.
What are those two locations for?  Why does data get written to those folders (I am talking 5-10 GB a day, which adds up significantly over time).
Shouldn't the database be the only one that should increase in terms of disk size?

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