(Reuters) - Alphabet (NASDAQ:GOOGL) Inc's Google has invested $1 billion in CME Group (NASDAQ:CME) and has struck a separate deal to move the futures exchange operator's trading systems to the cloud, the companies said on Thursday.
Under the terms of the 10-year partnership between Google and CME, the Chicago-based exchange operator will begin moving its technology infrastructure to Google Cloud next year.
The deal with CME marks a big win for Google's cloud business, which competes against Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT) for large, lucrative contracts from blue-chip Fortune 500 companies.
The deal also gives Google a foothold in the financial services sector, which is starting to invest big money on cloud computing services.
Google's $1 billion equity investment was in the form of non-voting convertible preferred stock of CME, the companies added.
The partnership with Google would help CME provide easy access for more market participants, optimize costs and streamline IT infrastructure and other operations, the companies said.
Last year, Amazon and two stock exchanges - Singapore Exchange (OTC:SPXCY) SGX and London-based Aquis Exchange - undertook a pilot program which they said showed moving share trading to cloud computing from costly physical servers could save money and reduce the potential for outages.