Few technologies are as well known — and as frequently misunderstood — as cloud computing. Cloud services may top the list of technology buzzwords used by in corporate boardrooms, by Wall Street analysts, and within insurance IT organizations, but there seems to be little clarity or consistency in the use of the term, and even less common understanding of the underlying concept.

With this in mind, Celent has embarked on a series of reports focused on opportunities and best practices for utilization of cloud computing in financial services. This first report is aimed at providing insurance executives a solid foundation in understanding the enabling technologies, business models, and opportunities (and risks) of embarking on a cloud services project.

“Cloud computing has such potential in our industry. The combination of increased computing power at lower, variable, cost is huge. It is a trend and process we will continue to follow,” says Tom Scales, a research director with Celent’s Life, Health and Annuity Insurance practice and coauthor of the report. “The next step is for the software vendors for a broader range of functions, such as policy administration, to get on board.”

This 38-page report contains six figures and two tables.