An archive is a collection of historical records that are kept for long-term retention and used for future reference. Typically, archives contain data that is not actively used. Basically, a backup is a copy of a set of data, while an archive holds original data that has been removed from its original location.
As an MSP, you know companies need to protect their data in the event of an emergency, keeping all employees' information safe. As mentioned before, data backup is helpful in the event of major data loss, as it allows your clients to quickly restore their data back to its original state. However, backing up large amounts of data can cause the backup infrastructure to run slowly.
File archiving works with data backup to reduce backup costs and reduce the strain large amounts of data put on your storage infrastructure. The goal of file archiving is not to restore lost data quickly, but to store data and organize it in a way that you can easily search through it to find specific information.