Foxconn Emerges as Server Market Leader, Palantir X Anduril Partner for Pentagon Bids, and IT Leaders Brace for Major 2025 Outages

Welcome to NR Insider, your weekly digest on all things Tech, Hardware, and AI. Follow along to dive into the latest developments and most important topics in the world of technology. We have gathered all the highlights from cutting-edge hardware and groundbreaking AI advancements to major industry news. As we start Week 52 in Tech, let’s recap some major tech news you may have missed during Week 51.

Foxconn Set to Lead the Global Server Market Driven by AI Growth

Foxconn is on track to become the first non-US company to lead the global server market, driven by an unprecedented demand for AI-optimized servers from major US cloud providers such as Microsoft, Amazon, Google, and Meta. These four companies alone accounted for nearly half of 2024’s data center investments, significantly influencing the competitive server landscape. According to Omdia, Foxconn's rapid growth will see it surpass Dell, which has held the top position since overtaking HPE in 2018. Other vendors, including Quanta Cloud Technologies, ZT Systems, and Super Micro, also experienced exceptional growth in 2024, with revenues more than doubling. Dell secured strategic partnerships and expanded its AI-focused services, remaining a key player despite these ranking changes. While regulatory challenges and GPU shortages limited enterprise AI production in 2024, the market is thriving, with projections reaching $380 billion by 2028 and nearly $500 billion by 2030, as AI-driven investments continue to shape the future of the server industry.

Palantir and Anduril Join Forces for Pentagon Bids

Palantir Technologies and Anduril Industries are collaborating with several other prominent tech firms to form a consortium aimed at bidding for U.S. government defense contracts, according to a Financial Times report. The consortium, expected to announce partnerships as early as January, could include companies like SpaceX, OpenAI, Scale AI, and autonomous shipbuilder Saronic. The group aims to bring together Silicon Valley’s top tech firms to provide the U.S. government with advanced defense capabilities, including AI-powered systems and uncrewed technologies. This move aligns with the incoming U.S. administration’s focus on enhancing efficiency in defense spending, which has raised concerns among traditional defense contractors like Boeing, Lockheed Martin, and Northrop Grumman.

Will 2025 Be the Year of IT Outages? IT Leaders Brace for Disruptions

A PagerDuty study reveals that 88% of executives anticipate significant IT disruptions in 2025, driven by growing complexity in digital operations and a lack of preparedness. Forty-four percent relied on manual processes during recent outages, while 39% reported impacts on decision-making and revenue losses. Despite prioritizing security efforts, 86% of executives admitted to neglecting operational resilience, with technical debt and outdated systems creating vulnerabilities that increase the risk of service disruptions. To address these challenges, IT leaders must strike a balance between security and operational resilience by implementing proactive measures such as automation, improved monitoring systems, clear communication, and regular testing. By addressing these gaps and focusing on proactive incident management, organizations can strengthen their resilience and reduce the likelihood of major IT outages in the future.

Up Next - Week 1 in Tech 2025

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