We've currently got four web servers in a farm generating IIS web logs about 100Mb per day. These can be compressed pretty effieciently down to somewhere around 5% of their size.
We are planning to use waRmZip to move them off the servers and onto a SAN. After a week or so we can be confident we don't have any technical issues to investigate so the only other thing would be using them for trend analysis as a compliment to Google Analytics.
What retention periods do people recommend? Are there any legal requirements to keep this data?