SBS 2011 Standard Exchange Archiving

Hi

I have users who have been sending and receiving emails successfully for a while.

Now they are being asked to archive their emails.  How does the archive work in Exchange/SBS 2011?

I go into exchange and enable the archive feature.  Where does it archive emails?  Are they archived to PST files?

I would be grateful if someone could help out a newbie on this subject.

The aim is that users should be able to search and access archived emails easily.

Thanks