Many in the insurance industry are rightfully concerned about the security of sensitive data in cloud computing environments. That's why the best approach is a hybrid one, in which resources are brought in from outside providers, while an internally supported cloud can provide similar efficiencies while staying inside the firewall. Narragansett Bay Insurance Co. is an example of a company that is moving operations to both internally and externally supported cloud-based systems as a way to consolidate and streamline its sprawling server infrastructure.

“Even though we have the cloud, its all managed by our people—we're just borrowing the services and getting the cost benefit of that hardware and software while paying it over time,” explains Michael Anselmo, CIO of Narragansett Bay.

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