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Exchange is the server side of a collaborative application product that is part of the Microsoft Server infrastructure. Exchange's major features include email, calendaring, contacts and tasks, support for mobile and web-based access to information, and support for data storage.
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If you look at SBS 2011 standard you have a fully on premise solution which includes exchange 2010, you are able to use the archive functionality included in exchange 2010 only thing is you need to buy beside the SBS CAL's also exchange 2010 Enterprise CAL's for the use of the archive feature.
The personal archive is just a special Mailbox on your exchange database and can grow as big as you allow them.
When you look at SBS 2011 essentials you have a on-premise dc, file, but not exchange and or sharepoint these are only possible via a connector to a hosted solution.