Hi,
Will removing space from the server increases the speed/performance.
how are they related?
please explain the relationship. thanks in advance
regards,
Pradeep
What do you exactly mean by speed. If your IO is low then you need to reorganize your data. I believe linux has no utility to do so. Aix do have. The speed of an server can only increase if you give it additional processor.. So add new processors and if memory is the bottleneck the add memory. If in network check the network stats as well. Give more details as in what is your server used for and what applications are runnig slow. removing data from hdd wont make it fast.
Disk space just sits there, it doesn't do anything. It can't slow the server down unless it actually uses it.
I take it you have a performance problem in your server. If it's a straightforward problem of the hardware being simply insufficient, you still have to figure out which straightforward problem it is. 
Not enough CPU power? Faster CPU or, if the application and hardware supports it, more CPU cores. Not enough disk speed? Faster disks, or more disks RAIDed in a more parallel manner, or reconfigure your filesystem/application to work more optimally. Not enough memory? More memory.
It might not be a hardware problem for all we know, though. Can you give us more details on what's happening?