Question: I am having windows 8.1 with update 1 installed and all release updates of windows till the date i am posting this questions. System is laptop, Core i3 with 6 GB RAM and 500GB hard disk.
When ever i restart my CPU or resume it from hibernate or sleep, “Service Host: Local system (network restricted)” process which i can see in task manager along with many other child services, is taking 100% Hard Disk.
These process makes system very slow not even at startup but sometimes, they drill the hard disk anytime they want.
Answer: I really appreciate the help by the user @magicandre1981. Apart from that the solution that i came to have is to disable Superfetch service in Windows. Microsoft says it improves system performance over time by seeing program usage but what i research on the internet, many users complained about it that initially when system is newly installed, it runs ok but within time, Superfetch starts thrashing hard disk.
To experiment it my self, i first stopped this service, then suddenly my hard disk usage dropped from 98 percent to 5 percent. Immediately i found that it was culprit. I disabled this service and when i hibernated system, to my surprise, the hibernate is very fast now. As well as resume was more fast than ever.
The concern that Microsoft says that it improves the performance, what i see that after disabling Superfetch Service, system performance is increase instead of dropping.
Thank you everyone. This was the solution.