Legal archiving office 365

We are moving to office 365 and are looking into the med-size vs Enterprise plans. Due to legal obligation, we need to have some sort of archiving that would keep all incoming and  outgoing to our organizations even if the user deletes them. That way if we need to go back and dig something out , we can have it available.  Also, this would help with keeping the mailboxes small since all users are not deleting much because they fear that they may need it for a legal case years from now.  Would the archiving of office 365 offer this option?
I heard that Symantec and Baracuda  offer such features, but not sure if the Archiving for the Entriprise plans of office 365 does the same thing. When I  look at the charts, it looks like its talking about some sor of Archiving at the user level, which the users have access to and can go back and delete whatever they want.
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netcompAsked:
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Vasil Michev (MVP)Commented:
Archiving just gives you the option to store your messages in a Online hosted archive, it does not prevent users from deleting them. What you are looking for is Litigation/In-Place hold. Alternatively, you can also use journaling, but that will require additional place to store the items.

Some links you can use:
http://technet.microsoft.com/en-US/library/ff637980(v=exchg.150).aspx
http://blogs.technet.com/b/exchange/archive/2012/09/28/in-place-ediscovery-and-in-place-hold-in-the-new-exchange-part-ii.aspx

You will need Exchange Online plan 2 to use this feature.
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Joseph OLoughlinIT Support SpecialistCommented:
And don't let your subscriptions lapse.
Check that your support, if through an external organisation, that they are certified to support Office 365; don't take comfort in them claiming to be a Microsoft Partner.  (As when things go wrong, they can't escalate the case into Microsoft).
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