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My Org primarily capturing correspondence by Email to case, The Inbox receives large amount of emails, that exceeds our data limits. Need to find a solution. We need to retain some data for compliance purpose and users would be pulling out the data reports. How to resolve this issue.

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There isn't really any way around this. You could consolidate some of your data or move it to a different system, but ultimately the only way to increase the data limits in Salesforce would be to purchase additional storage.

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