Exchange 2007 does have some capabilities. For example, journaling by individual mailbox that allows archiving to happen much more smoothly and allow people to selectively archive. They also have transport rules to help with message classification. So I think Exchange 2007 as a stand-alone archiving solution isn't really a great choice. But having it as a part of an archiving environment, where it is feeding an archive software is a great alternative.
Go back to the beginning of the Email Archiving in 2008 FAQ Guide.
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Rich Castagna, Editorial DirectorThis was first published in April 2008
Storage Management Strategies for the CIO