Strictly speaking, using web services internally is not using the cloud because internal web services do not provide elasticity.
Elasticity is a key characteristic of cloud computing, referring to the ability to dynamically provision and scale resources based on demand. This allows organizations to consume resources efficiently and meet fluctuating workloads without manual intervention.
So, Internal web services, on the other hand, often rely on fixed infrastructure resources, limiting their ability to automatically scale up or down based on usage. This can lead to inefficient resource utilization and potential performance bottlenecks.