Upgrade Exchange setup

Our IT setup started out fairly basic and the number of users has rocketed over the last few years.  Now we're in a situation where physical storage on the exchange server is running low and we need to do something now before it becomes a real problem (if it's not too late already)

We have 3 physical servers as follows

DC1 - DC, File shares
HP Proliant DL380 G6, 16GB RAM,  Windows server 2008 R2, 136GB RAID 1 (drive c), 1.5TB DAS (Drive D)

EXCH1 - Exchange, BES
HP Proliant DL380 G6, 16GB RAM,  Windows server 2008 R2, 136GB RAID 1 (drive c), 546GB RAID5 (Drive D) (no more free disc slots)

Terminal Server
TS1 - HP Proliant DL360 G4, Windows Server 2008 R2, 136GB RAID 1(Drive C)

There are 170 mailboxes and mailbox.edb is now huge at 500GB although some users (ie management) have inordinate amounts of mail.  We also want to implement a mail archiving solution and have looked at GFI Mail Archiver.  

I'm looking for recommendations of how to upgrade this system to make it more scalable, robust and efficient.  It must be done live and with reasonable costs.

We have no experience of VMware so I cant go that route without outsourcing and that will blow my budget for sure.

Please share your thoughts and recommendations
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tech53Asked:
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AmitIT ArchitectCommented:
Use Exchange 2010 Archiving solution. Easy to setup and implement.
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Nick RhodeIT DirectorCommented:
I know you stated VMware is out of your budget but its really not that expensive for an essentials license (around $500 - $600) and thats licenses up to 3 hosts (2 cpu's per host)

Setting it up and installing ESXi to a flashdrive inside the server takes about 10 minutes depending on the hardware and you can use standalone converter to migrate to a physical to a VM.  You can even play around with VMware by registering for a free vmware license.  This is a very cost effective solution and has been my recommended route for all my clients.

If you have some time check this over:  http://www.experts-exchange.com/Software/VMWare/A_11116-HOW-TO-Install-and-Configure-VMware-vSphere-Hypervisor-5-1-ESXi-5-1.html

hanccocka is an expert here and has written a crazy amount of articles for users like yourself with little experience as well as advanced articles for VMware users.  I would suggest taking a little bit of time to review and see his articles to get a better understanding for it would honestly be a good route to eventually go to.
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