if you are facing connection performance issue for your ArcSDE Geodatabase, there is a mechanism to perform troubleshooting using SDEINTERCEPT.
To configure the SDEINTERCEPT either you set it up on the server side if you are using ArcSDE as an application server. If you are using Direct-Connection then use the SDEINTERCEPT on the client machine where ArcGIS Desktop is installed.
the following example, shows you to set the environment variables on UNIX environment (C SHELL), for an ArcSDE application server Architecture (3-tier):
setenv SDEINTERCEPT crwtf setenv SDEINTERCEPTLOC /apps/arcsde/
For direct connection, you need to add the parameters in your windows registry.
For More Detailed Information, use this ESRI reference documentation: http://support.esri.com/en/knowledgebase/techarticles/detail/35704