Norfolk County Council (NCC) Children's Services is gearing up to make cuts in administrative staff across its 400 schools by moving its applications, storage and security into the cloud.
Paul Fisher, assistant director of education for NCC said that conservative estimates put the cost savings at around £2.5m, as school staff across the county could face the axe.
"Schools will have the ability to cut labour costs with this service - which will be their individual choice," he said.
"[This move] meets two of our highest priorities in public sector spending constraints and reducing our carbon footprint," he added.
The "virtual data centre" contract with BT will provide learning services to more than 100,000 pupils in schools across Norfolk and will run for four years.