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A cloud based service or application is distinguished from “web services” by the type of services it provides.
For example, web services are web infrastructures that provide core services like security, claims transformation, and information card production.
The cloud based service is an application with dynamic user interaction performed. An example of a cloud based service or application is saleforce.com or pelotonics.com. A simple cloud based service is dictionary.com. Any search engine is actually a cloud based service.