PCD,
 In-n-Out burger, you must be near me in San Diego.
 Chris,
 I should declare my bias I suppose, I work for one of those hosted
providers (Direct EDI).  Though the term service burrow tends to
hearkens back to a nearly unrelated line of business.  Technically we
do some of that business (fax to edi, pre printed labels...), its
certainly not a focus.
 I implement enterprise integration, in a Business Object Model,
using SOA architecture delivered as a SaaS offering (including
notification and a great transaction interface).
 Transaction volume per Trading partner is the key to determining if
our services are right for you.  Unlike some services previously
mentioned, we utilize a business object model, so each trading partner
is not a new integration project.  Adding new transaction types is
more cost effective (compared to in house and other services), though
the upfront cost of integration is comparable.
 While others have mentioned the cost of creating/maintaining maps
(which can be substantial for a large number), and the cost of
hardware/software purchase/maintenance, which does not happen with
Hosted solutions, don't forget customization.  Most of the enterprise
translation packages (I have impemented a number of them) don't come
out of the box with adiquite reporting or transaction management
functionality, much less active notification functionality, and these
tools take much consulting to create.
 Its primarily an issue of capitalization, if the cost of
transactions over time, is greater than all of the capital investment
listed above, then in house makes more sense.  Its the over time part
that is usually not considered properly - its not like buying a house,
most of these packages have been supported by there providers for less
than 10 years historically.  Plus there is the whole upgrade costs.
 I am not in Sales, but I passed your email across the room to one of
our sales people, if you would like to run some numbers, or feel free
to contact me off list.
 Good luck.
 Jeff Larsen
                                      

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