Archiving with Office 365

We have just migrated from on premise exchange to Office 365 with exchange online only licensing.

We have a couple of users who's mailboxes are extremely large (largest being 39GB) and was wondering what is the best course of action to start archiving some of the older mail.

Historically I have just created PST's per year and moved the email from exchange account to PST (ensuring the PST's are within a backed up server)

I'm not sure if when moving from exchange online - via Outlook - to PST that the files are actually moved, jut copied.

Hope this makes sense! If any experienced Office 365 admins can give advice.
Nick SmithHead of ITAsked:
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Vasil Michev (MVP)Commented:
You have Online archives included in the cost of the license, use them. It's pretty much a single click to start using them, and the end user experience will be better as well. The documentation covers all the basics: https://technet.microsoft.com/en-us/library/dn922147(v=exchg.150).aspx

PSTs are thing of the past, here's a recent post from the Exchange blog on them: http://blogs.technet.com/b/exchange/archive/2015/07/08/deep-sixing-pst-files.aspx

If you have any other questions let us know.
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Zacharia KurianAdministrator- Data Center & NetworkCommented:
I do agree with @Vasil.

Zac
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Nick SmithHead of ITAuthor Commented:
Excellent, thanks for pointing that out Vasil. I will enable this for the user within our O365 portal.

I didn't realise In-Place Archive was included in Exchange Online Plan 1! Out of interest, when it archives I'm guessing it just sticks within the users quota but just moves the items away from the inbox.

Another question, when it archives does it also target the sent items too, or just the inbox. Also does it archive older items that reside in subfolders within the inbox...or does it just target the top level inbox?
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Zacharia KurianAdministrator- Data Center & NetworkCommented:
It is a complete archive not specific to any folders.

Zac
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