Steve Whitaker wrote
; server space is inexpensive...; and CDs and zip drives can be used for short term media (with appropriate back-up procedures, etc.).

I would not recommend creating 'records silos' as suggested above.  It is imperrative to have access to all the records which should be stored in THE record keeping repository whether physical or electronic.  Having short term data on separate storage medium means not everyone will have access to that information and decisions may be made in a vacuum.