XML is a hot new technology for describing data. It is also being touted as the technology that will enable the creation of the next-generation Internet applications. XML holds the promise of exchanging data seamlessly and efficiently between applications running on multiple platforms. However, it is difficult for an IT manager to adopt a new technology like XML and build applications successfully using it. Developing applications using a relatively new technology like XML involve considerable amount of investment in time, effort, money and manpower and an IT manager has to fully understand what the new technology is, what it offers, its advantages, limitations, and future direction, before making capital expenditure. This paper aims to dispel the myths surrounding XML.