The role of technology departments is fast evolving within the insurance industry, from a collection of programmers and network administrators for behind-the-scenes applications to that of service provider on many levels.

A couple months back, I sat in a session led by Forrester's Lauren Nelson, who described how internal IT should, in many ways, be competitive with public cloud services—and not just as an extension of a virtualized data center. Pricing and on-demand service delivery for internal IT should be almost indistinguishable from public cloud providers.

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