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What is an Environment?

I have always wondered how we could describe an environment? We have Dev, test, Prod environments and so on.

Below is my understanding of an environment.

An environment encompasses the necessary hardware(single or multiple servers)(physical / virtual ), Software dependencies, database, compiler/interpreter, network access for an application to run and is isolated from other environments unless explicitly connected.

Is this correct or is there a better way to describe it ? I want to understand this better as this is something that I use everyday and so I want my understanding of something fundamental to be solid.

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