I just noted that when we have users message options set to This user can send/receive messages to/from his/her own domain only. The emails do not go out to the Cloud.

1. Direct: The e-mail you entered is the unique Barracuda archive address for your organization (for example, 'MyArchive<_at_>cloud.barracuda.com). Archiving mail is basically now a universal forwarder. All messages are sent via normal SMTP to that address, as if the users themselves sent an e-mail to it. This will fail for users that have been flagged as 'send/receive from their domain only', because the destination is a different domain
   
2. Pull: The e-mail you entered is for a special 'archive' account on your kerio mail server. You then configure the cloud server to periodically log in to that account to download and delete the archived messages. This will work regardless of a person's 'their domain only' setting, because the server doesn't have to relay it; it effectively just makes a copy in that archiving account.