Vendors say software as a service willl cut costs and increase efficiency. They say it's enterprise-ready. Does that sound too good to be true? It is.

A annototed glossary to SaaS-type outsourcing models

ASP- An application service provider handles the deloyment of a typically noncritical IT function because the CIO doesn't want the overhead of owning it. e.g. Oracle On-Demand ERP software, workday HR software and any Web host

BPO- A business process outsourcer handels an entire processes for you, such as sending out paychecks or getting credit scores, and it makes sense when hwo the vendor delivers the function doesn't matter, it's the result that u're buying.

MSP - A management service provider handles a set of service on behalf of a company. e.g. Scansafe virus detection, Vercuity telecom expense management.