Error: timeout expired when committing a monthly recurring gift batch

Since upgrading to CRM version 3.0, users are experiencing performance issues. One example of this is the committing of a monthly recurring gift Batch, which ran for 13 hours before terminating unexpectedly with the error: timeout error. the timeout period elapsed prior to completion of the operation or the server is not responding.
We are currently evaluating this issue and will update this article when we have more information.

Environment

 3.0.516 SP 6, patch 34

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