Boeing and IBM said on Monday that they will join hands to develop ground and space-based systems to enhance US military communications, intelligence operations and homeland security.

The two companies said their agreement to form a strategic alliance brings together the second largest US defense contractor and the leader in information technology to address an estimated 200 billion US dollar market.

Through a 10-year alliance, Boeing and IBM will develop advanced digital communications and information technologies for current and future US military and intelligence systems.

"These technologies will be critical for network-centric operations where satellites, aircraft, ships and submarines - as well as tanks, radios and even handheld computers - share information using the same interfaces, standards or protocols," IBM said in a statement.

The conflicts of the future will be less dependent upon who has the most physical assets such as ships, planes and tanks, but determined by who has the best information and the most efficient means of sharing it among all elements of the fighting forces, said Jim Albaugh, president and CEO of Boeing Integrated Defense Systems.

Albaugh said the Boeing and IBM team will deliver the finest digital information technology industry has to offer.

Under the agreement, Boeing brings to the alliance its experience as a major military and intelligence platform provider. IBM will provide Boeing with information management middleware, design elements for electronic systems products, integrate leading-edge technology into a variety of networking and computing systems and provide microprocessor technology.