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It is possible to configure a life cycle rule in S3 to move data to Glacier after a certain number of days.
Alternatively, if you want to rewrite the data directly to Glacier, you could have a MediaAgent in an AWS EC2 instance run the aux copy so that the data doesn't have to traverse the WAN back to your local site only to leave again.
I verified in a lab setup that the audit trail report works on SP8 with medium severity events. I would recommend that you open a TR with support and upload your CommServe database so this issue can be investigated further.
I can replicate the error you received when using single quote (') characters around the password. It appears to work fine when using double quote ('') characters (which are different from using two single quote characters) around the password since it has special characters in it. Sometimes these characters don't copy and paste well across ...
Only the MediaAgents which will write to (e.g. backups or aux copies) or read from (e.g. restore) need to be able to connect to S3. The only time another client would need direct access to S3 is if the client has the MA package installed on it to act as the MA for its backups/restores. If you use a MediaAgent which has direct (i.e. LAN free) access