How might this partnership reshape the competitive landscape versus Microsoft Azure, AWS, and Google Cloud for IT/OT convergence solutions?

Strategic Impact on the IT/OT Cloud Landscape

The Siemens‑Snowflake alliance creates a vertically‑integrated “AI Data Cloud” for industrial customers that directly competes with the generic cloud services of Azure, AWS, and Google Cloud. Siemens’ Industrial Edge hardware and software stack now ships with native Snowflake connectors, letting manufacturers ingest shop‑floor sensor streams, MES data, and ERP/finance records into a single, fully managed data lake with built‑in AI/ML tooling. This lowers the integration cost and latency that has traditionally forced enterprises to cobble together custom pipelines on the big‑three hyperscalers. By owning both the edge layer (Siemens) and the data‑warehousing/AI layer (Snowflake), the partnership can offer tighter SLAs, industry‑specific security certifications, and pre‑built analytics use‑cases (predictive maintenance, demand‑driven production, quality‑first AI). Consequently, industrial firms that are currently “cloud‑agnostic” may gravitate toward this purpose‑built solution, eroding the market share of Azure‑IoT, AWS IoT Greengrass, and Google Cloud IoT Core for the high‑value IT/OT convergence segment.

Trading Implications and Technical Outlook

Fundamentals: Snowflake’s ARR guidance has already factored in strong demand from enterprise data warehousing, but the Siemens tie‑up adds a new, high‑margin industrial vertical that can accelerate ARR growth at 25‑30 % YoY once the joint solution hits scale (expected rollout Q4 2024). Siemens’ Digital Industries revenue, which has been a modest growth driver, should now benefit from higher cross‑sell rates and potentially higher subscription‑based fees, supporting a premium valuation multiple for its Software & Services segment. Look for upward revisions to Siemens (OT) digital‑industrial guidance in Q2‑Q3 2025.

Technical: Snowflake (SNOW) is trading near its 200‑day SMA with a bullish MACD crossover and RSI hovering around 55, suggesting room for upside on volume‑driven buying. A break above $250 would trigger a short‑term target around $285 (≈15 % upside) based on the prior high‑low channel. Siemens (SIEGY) is also in a consolidation phase above its 50‑day EMA; a close above $120 could see a rally toward $135, reflecting the added industrial‑cloud revenue stream.

Actionable Play: Consider a long‑biased spread—buy Snowflake and Siemens while short‑selling a basket of cloud peers (e.g., Azure‑exposed Microsoft MSFT, AWS‑exposed Amazon AMZN, and Google GOOGL) to isolate the incremental benefit from the partnership. The spread should widen if the joint solution gains traction (e.g., new customer wins, early‑stage case studies) and can be unwound if the partnership stalls or if the big‑three deepen their own vertical offerings (e.g., Azure‑Industrial IoT bundles). Keep stop‑losses near the 200‑day SMA breach for each leg to manage downside risk.