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What is the difference between Data Migration and Data Archiving?

We have a Sharepoint application for document archiving, and its database size is nearly 1 TB. So I have a plan to reduce the size of the database by moving documents from Sharepoint to any other storage using archiving products.

Here I only want to know about concepts behind these terms.

For my above requirements, which one is the correct term to use? Data Archival or Data Migration?

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This is a little ambiguous depending on who you talk to.

Generally, I consider migration to be moving data from point A to point B within the farm, this could be from one site collection to another. I consider archiving to be moving it out of the farm to lower tier storage, like a network share, or disposing of the content altogether.

From the DBA perspective you are probably concerned with performance and backups and the like on the server. Realistically though, you can't willy nilly be yanking content out if the business users are using it. You also have to take records management into account, typically though moving from one repository to another is acceptable.

Regardless of what you want to call it, you need to identify the frequently accessed content vs the stuff that hasn't been touched in months or years, formulate a SLA/policy around that, and enforce that old content be disposed or marked for archival to some other site or out of the environment.

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