The agreement will see the two companies leverage each others' technology and industry resources to build an IoT solution to support Industry 4.0, the transformation of China's manufacturing sector and other industrial internet initiative.
Siemens will deploy its MindSpehere cloud-based open IoT operating system on Alibaba Cloud to provide services designed to allow mainland Chinese companies to innovate with advanced industrial solutions.
MindSphere provides a range of device and enterprise connectivity options, as well as applications, analytics and digital twin capabilities.
The agreement between the two company was signed by Siemens CEO Joe Kaeser and Alibaba Cloud president Simon Hu and witnessed by German chancellor Angela Merkel and Chinese premier Li Keqiang during the latter's official state visit to Germany.
“Today’s landmark partnership marks an exciting step towards Alibaba Cloud’s goal to enable digital transformation across the globe,” Alibaba Cloud's Hu said.
“We are delighted to partner with Siemens and together we hope to accelerate the adoption of IoT products and services that will create industry-wide breakthroughs and progress.”
Under the agreement, both companies plan to begin collaborating immediately and to make MindSphere available on Alibaba Cloud in 2019.