In the latest sign of integration between the telecoms and technology industries, Vodafone is partnering with Google's cloud division to jointly create data services that they will potentially market to other companies.

The two companies will send 1,000 staff to the UK, Spain, and the US to work on a new cloud-based storage and analytics portal that will host the telecoms company's information. According to the companies, 'Nucleus' would be capable of processing about 50 terabytes of data per day in the cloud, which is equal to 25,000 hours of high-definition video.

Vodafone and Google will also develop a system that can extract and transport data through various countries where the telecoms business operates as part of the six-year deal. The system will be known as 'Dynamo'.

As part of the agreement, Vodafone will move data from its own servers to Google Cloud. It stated that the transfer would be compliant with all local data protection and privacy laws and regulations.

In addition, Vodafone will also be able to build a ‘digital twin’ of its own network to virtually test where capacity is needed and run simulations of new networks using the technology.

In the future, the two companies hope to sell consulting services to other multinational companies seeking to transfer large volumes of data to the cloud.

Ever since Nick Read took over as CEO in 2018, the company has made digital transformation a core part of its strategy. It has set a goal of saving 1.2 billion euros in net operating expenses in Europe by using digital processes more effectively. According to the group, the partnership with Google could cut the cost of running certain systems by 20 percent to 40 percent.

The venture is the latest example of telecom companies collaborating more closely with the largest cloud providers to reduce the cost of operating their own data centres while also speeding up the growth of artificial intelligence (AI) and predictive systems.