I'd suggest your first step be to identify any compliance requirements that your organization may have in regards to retaining data (HIPAA, PCI, SOX, GLBA, State/local, etc.) as you must meet these. Then, you should sit down with your team to discuss how long you really need to keep the other information on hand. You may decide that all information can be purged after a certain amount of time, or it may be decided that retention for some data should be longer than others.There are a number of inexpensive cloud-based options that you could use to archive your data. For example, Amazon S3 or Sharepoint.
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