Virgin America has signed a deal with Google to provide cloud-based apps to all its 1,700 staff across the US.

Virgin employees will shift to GMail and start using other Google apps like Docs, Google Talk and Google Calendar. The search and ad giant reckons the move will save Virgin half of its previous email costs and cut the airline's future storage requirements by as much as 18 terabytes.

The move is being overseen by Google reseller SADA Systems, which is also putting in place a single-sign-on system, an integrated telephone system and customising the email system.

Google used a blog post to announce the Virgin contract. ®