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Is cloud computing a technology approach that will make a difference for insurers? And just what is cloud computing, anyway? These questions are on the mind of many business and technology executives in insurance today.

To answer these questions, the first task is to explore the scope of cloud computing. It is easy to get confused by the long list of terms that seem to overlap “cloud,” or that are just different names for the same concept—such as hosted services, managed services, SaaS (Software-as-a-Service), outsourcing, ASP (application services provider), or grid computing.  

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