Journaling in Office365

Well I was told there is an option to journal in Office365.  Doesn't seem to be as straight forward as I assumed.
Have performed a cutover migration from an Exchange on-premise server and am looking for guidance on how to setup journaling.  
Do we still need to keep the on-premise Exchange server in place?  Have read that E3 licenses are required, but cannot find a good how-to.

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WebccAuthor Commented:
So, you have to setup an external account for Journaling?  
What about using the on-premise Exchange server, can that be used?  
Would that have to be configured in a hybrid setup?
Todd NelsonSystems EngineerCommented:
This note in the "Journaling in Exchange Online" article (under the "Journaling mailbox" section) pretty much answers all of your questions...

In Office 365, you can't designate an Exchange Online mailbox as a journaling mailbox. You can deliver journal reports to an on-premises archiving system or a third-party archiving service. If you’re running an Exchange hybrid deployment with your mailboxes split between on-premises servers and Office 365, you can designate an on-premises mailbox as the journaling mailbox for your Exchange Online and on-premises mailboxes.
Jason CrawfordTransport NinjaCommented:
Because you can run an eDiscovery search across all mailboxes and retain data using a litigation hold, the server/database itself is your archive.  The Exchange Hosted Archive product used to act as a central repository, but that has been replaced with Exchange Online Archiving which is archiving on a per mailbox basis.
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