Archiving with SharePoint Feasibility

Someone asked me 'Is sharePoint an archive solution'. I wasnt too sure how to answer this one. Currently SP is being used to host collaboration documents.

I know sharepoint can but should SP be used to store managed documents for archival purposes for long durations of time, access would be very occasional and probably for the regulators ?

The things I need to consider are: hardware storage costs of SP verses network drives ability to access in many years to come ability to access correct information

Any views and personal experiences would help (and so would any useful links)?

Thanks