Chris Byrne tells the incredible story of an organization under court order not to delete any e-mails:

The question is if there is a magic technical bullet to make their pain go away. The short answer is no. The no-delete policy has put them into a serious bind. Because they did not have an email archiving system in place before the court issued its order, they have no place to store all of the old mail. They are 18 months into a project implementing an archiving solution, but have only archived 25% of the mail on their systems. Local archiving is not an option because all mail must be on the servers. They do not have enough server space to handle server based archiving or mail journaling. In fact, the full-time task of one of their administrators is to monitor disk space on their 100+ servers.
Chris has several recommendations for improving the issues in this organization, and draws comparisons to another organization with solid, proactive policies.

I still personally think that low mail quotas are counter-productive, but never deleting or archiving anything is clearly not helpful, either.

Link: Chris Byrne: SNTT: With Mail Files, Size Really Does Matter >

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