MSSQL and Very Large Tables

I’m working on a project for work and I have some concerns about storage. We use MS SQL server 2005. The project involves some tracking and I’m estimating that there will be about 5 million entries in one table every month. My boss wants these statistics to stay in the db indefinitely, though I’m not sure this is going to be possible.

Has anyone worked with large table in mssql? Are my concerns unfounded? Aside from dumping the data every so often and storing it somewhere else, is there another clever solution for handling this? I’ve always been a mysql and postgres user, so I’m still not intimately familiar with mssql.

Thanks…