Hi Lethy,
Question1:
Yes, if you still use Exchange on premise, you can’t use Exchange based archiving.
Question2:
In my opinion, for SFB online, it’s unlike for SFB on premise, there is no option to store archived data in SQL server, the only way is to integrate with Exchange, for details, please refer to
http://blogs.perficient.com/microsoft/2014/10/office-365-understanding-archiving-in-lync-online/
Here is a similar case for your reference
https://social.technet.microsoft.com/Forums/lync/en-US/a3af56ca-cca1-4c89-93de-0a81fbede6c4/archiving-in-skype-for-business-online?forum=sfbfr
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Regards,
Alice Wang
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