Log files in complex systems quickly grow into huge sizes. Often, they must be kept for a long period of time. For the convenience and storage economy, log files should be compressed. However, most of the available log file compression tools use a general-purpose algorithms, which do not take advantage of redundancy specific log files. The objective of this paper is to use Length Index Preserving Transformation (LIPT) technique to transform the log files and reduces the significant amount of redundant characters. The applied transformed file in data compression tool will effectively reduce storage space. It has been observed that LIPT is an effective way to transform log files for size reduction and the file size get reduced to the average of 44% before the compression. During the process of transformation the redundant character gets reduced.