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IPoDWDM in 2026

Why early IP over DWDM failed, what coherent pluggables changed, and how to decide whether it makes sense for your network.

01

History

IPoDWDM is a networking technology that integrates IP routing directly with optical transport networks.

Before: non-integrated IP + DWDM

RouterTransponderROADM
Cisco CRS-1 1-Port OC-768C/STM-256C DPSK+ Tunable WDMPOS Interface ModuleSource: Cisco Systems

IPoDWDM

RouterROADM
Cisco CRS-1 4-Port 10GE Tunable WDMPHY Interface ModuleSource: Cisco Systems

Functional equivalence of 10GbE + G.709 to 10G POS + transponder, with reduced CAPEX and OPEX.

02

Why Early IPoDWDM Failed

  • IPoDWDM line cards were large and expensive.
  • The routers and line cards consumed a lot of energy.
  • The line cards had fixed optical interfaces, i.e., not pluggable.
  • The IPoDWDM systems were all proprietary to one vendor.
  • Regular router port bandwidth grew faster than DWDM capacity.
  • Line-side optics were twice the physical size of the client-side, i.e. waste of space.
  • IP and Optical teams both wanted control of their domains.
Source: Cisco Systems
03

IPoDWDM in 2026

DWDM OEM standard solution

RouterGrey plugs→TransponderColoured plugs→n-degree ROADM

IPoDWDM operator solution

RouterCoherent plugs→Mux/demux→n-degree ROADM

The transponder disappears. The coherent plug sits in the router, and the line system only has to multiplex and route wavelengths.

04

It’s All About Pluggables

Coherent pluggables make IPoDWDM a reality.

From large, hot and power-hungry…

We have gone from large, hot and power-hungry DWDM plugs and optical engines…

Source: Nokia

…to MSA “xSFP” form factors with DWDM support.

  • IP operators do not like fixed ports or large plugs.
  • QSFP-DD and OSFP are very attractive because they solve both these problems.
  • Brings 400G easily to routers and switches.
  • Can run on dark fibre or integrate with a DWDM system for increased reach.
  • High output power of 0dB and +1dB make them a good alternative to embedded.

With the success of 400G, attention turned to 100G and 800G

100G-ZR QSFP28
800G-ZR QSFP-DD
800G-ZR OSFP

Source: Smartoptics

  • 100G coherent plugs come in the operator-friendly QSFP28 form factor.
  • 800G coherent plugs come in both QSFP-DD and OSFP form factors (similar to 400G).
  • The hyperscalers are converging on OSFP for 800G-ZR due to its superior thermal management.
  • All these fit nicely into routers and switches, offering IPoDWDM capability.
05

What It Looks Like

Traditional transport architecture
Router Network Management SystemVendor A Network Management SystemRouter Network Management System
Switch / RouterVendor A DWDM TerminalVendor A Optical Line SystemVendor A Optical Line SystemVendor A DWDM TerminalSwitch / Router
IP over DWDM with open optical line system
SDN-based Network Management
Switch / Router
400G ZR+ · QSFP-DD / OSFP
Open Optical Line System (OLS)
100s km
Open Optical Line System (OLS)Switch / Router
QSFP-DD / OSFP

The hyperscaler effect

  • Largely driven by the hyperscalers.
  • Quick 400G-ZR adoption.
  • High volume, low cost.
  • 800G-ZR is now next for them.
  • * Performance parity with embedded.
06

And In Real Life

This is a live IPoDWDM network in Cape Town, South Africa – 130km fibre span.

Rack in Cape Town with a Juniper Ethernet switch, Smartoptics optical line systems and mux/demux, and a Juniper ACX7300 router with coherent DWDM plugs
  • Juniper Ethernet switch.
  • Smartoptics optical line system (East).
  • Smartoptics optical line system (West).
  • Smartoptics mux/demux (East).
  • Smartoptics mux/demux (West).
  • Juniper ACX7300 router with 2x Smartoptics 400G-ZR+ QSFP-DD coherent DWDM plugs.

Junos CLI output of the coherent DWDM plugs

Junos CLI output showing coherent DWDM plug diagnostics
07

Disaggregation

Transport chassisLine cardEmbedded optics
→
Compact modularEmbedded optics
→
RouterPluggable optics

Source: CignalAI

  • The hyperscalers had a massive influence on disaggregation.
  • Disaggregation = removing the DWDM optic from the host platform.
  • In 2025, coherent pluggables outsold proprietary embedded by 2:1.
  • Today, most 400G-ZR shipments have gone into hyperscaler IPoDWDM deployments.
  • Coherent optics account for more than 60% of all optical revenue.
08

Pluggable Transponders

Pluggable transponders use plugs for both line- and client-side. Hyperscalers love IPoDWDM. But network operators are “old school” and want transponders. Pluggable transponders bridge the old with the new.

Transponders provide Layer 1:

AggregationDemarcationProtection

Pluggables provide:

MSA standardizationSpace and power savingsLower cost
Embedded opticsCFP2 pluggableQSFP-DD pluggableQSFP-DD / OSFP pluggable
400G / 800G / 1.2T400G400G800G
Gen60P / 90P / 120PGen60CGen60CGen120C

Source: Smartoptics

09

Benefits of IPoDWDM

BeforeWith IPoDWDM
Low system capacity
DWDM vs. client ports
Maximum system capacity
for both DWDM and client ports
Dedicated line cards
line- and client-side
Mix-and-match on same card
line- and client-side
Proprietary DWDM ports
no inter-op with other OEM’s
100/400/800G-ZR standards
inter-op with other OEM’s
Restrictive alien wave support
proprietary OEM systems
Open line systems
standardized management API’s
Scarce router capacity
IP traffic outpaces DWDM
Sufficient router capacity
Moore’s Law silicon advancement
10

Opportunities for Peering Architectures

400G peering + IPoDWDM backhaul to the nearest PoP.

Internet Exchange Switch
3× 100G400G-FR4/LR4 QSFP-DD grey plug
Peering Router
+400G-ZR+ QSFP-DD coherent plug
Edge / Core Router
PNI Peering Partner
1× 100G

IPoDWDM makes peering scalable.

11

Challenges of IPoDWDM

Host inter-op is the biggest question.

  • C-CMIS (Coherent Common Management Interface Specification). Defined by OIF.
  • C-CMIS standardizes how coherent pluggables and hosts communicate for management and control.
  • The goal: any plug in any host.
  • Router/switch OS requires C-CMIS support. Not always easy unless you are a big customer.
ProLabs coherent pluggableWILL IT WORK?Nokia router

Two teams, one network

IP and Optical teams in one network

In this network, IP and Optical teams each want control of the network. The solution is two-fold:

  1. Top-down management of routing, especially in large networks.
  2. Sharing of modem telemetry data between both the IP and Optical teams.
12

The Management Question

Different API standards solve different problems

  • CMIS looks at host & pluggable.
  • OpenConfig looks at common data models.
  • NETCONF and gNMI handle data retrieval and configuration.
  • SNMP is still widely deployed as a standard management tool.
  • REST and Kafka feed data northbound into the OSS.

Could removal of the transponder layer reduce the amount of data the OSS has to present?

IPoDWDM may not lead to a single management plane. But it removes one of the major reasons several management planes existed, in the first place. The optical controller has a legitimate role, but the transponder management plane can disappear.

Traditional layered architecture

IP / MPLSControl & OSS
Router + client optics
Transponder / muxponderManagement domain
ROADM / OLSOptical control & OSS

IPoDWDM: fewer managed layers

IP / routingControl, telemetry & OSS
Router + coherent pluggable
ROADM / OLSFor passive / P2P photonics
SimplerFewer layers to manage
FasterStreamlined operations
LowerTotal cost of ownership
GreaterFlexibility & scalability

The optical domain remains — but the dedicated transponder layer can disappear.

Deterministic service mapping

Traditional approach Multiple inventory objects and intermediate mappings
Router portInitial port where traffic originatesClient opticClient side optical interfaceTransponderOptical layer conversionROADM / OLSOptical layer switchingRemote transponderFinal port where service terminates
IPoDWDM approach Simplified inventory with deterministic mapping
Router port + coherent lambdaSingle inventory object (port mapped to wavelength)ROADM / OLSOptical layer switchingIPoDWDM: interface = wavelength
Example flow
Source port (Data Centre A)ROADM / OLSIPoDWDM: destination = wavelength
  • IPoDWDM can reduce the number of independent control and management planes.
  • Long term, the direction would be common orchestration and shared telemetry, rather than multiple isolated islands.
13

Does IPoDWDM Make Sense for Me?

Grey

  • You don’t own an optical network.
  • You operate a small metro network.
  • You require long-haul services.
  • You have slow capacity upgrade cycles.
  • You don’t need more than 100G-sized links.
  • You provide only IP-based services.
  • You want to limit costs to IP infrastructure only.
  • You don’t intend to grow too quickly.

Coloured IPoDWDM

  • You operate your own optical network.
  • You operate a large metro network.
  • You require short- and long-haul services.
  • You upgrade capacity very regularly.
  • You need links in excess of 100G capacity.
  • You want to free up costly transponder ports.
  • You want a low-cost entry into DWDM.
  • You want to aggressively drop per-bit costs.
14

Future – The Linear Way

Hyperscalers will invest heavily in 800G-ZR IPoDWDM from 2026.

Network operators will go a bit slow, focusing mainly on 400G-ZR and pluggable transponders.

Adoption driven more by operating model (forward-looking vs. legacy), than anything else.

Traditional DWDM vendors will see a decline in embedded optical engine sales.

Traditional DWDM vendors will try to balance legacy technology with pluggables.

Embedded optical engines will remain for challenging applications, e.g., subsea and ultra long haul.

Pluggables will be 2 – 3 years behind embedded optical engines. But convergence is speeding up.

Attention has now turned to 1600-ZR (1.6T) coherent pluggables.

15

Future – The “BYOTx” Way

Wholesale optical service models

Managed wavelength

Provider owns terminal optics

Managed / leased spectrum

Shared optical responsibility

Dark fibre

Customer owns optical layer

Coherent pluggables expand the practical space for alien wavelengths, spectrum services and BYO terminal equipment.

  • We are used to buying either dark fibre or capacity.
  • Spectrum services sit somewhere in the middle.
  • If I can present a qualified coherent pluggable or optical terminal, a carrier could sell me a defined piece of spectrum and an optical performance envelope, in lieu of a transponder-based Ethernet hand-off.
  • It’s a “Bring Your Own Transceiver/Terminal” model, where the customer controls the modem, and the carrier controls and assures the photonic path.
16

Final Thoughts

  1. 01IP/MPLS engineers are going to come across IPoDWDM as their networks grow.
  2. 02IP/MPLS engineers will need to have a basic understanding of DWDM and coherent technologies.
  3. 03IP & Optical domains will require top-down management intervention to collaborate.
  4. 04Network operators are going to democratize their vendor pool list for optical equipment.
  5. 05Traditional optical vendors are going to have to adapt to the changing landscape.
  6. 06The likelihood of encountering IPoDWDM increases as you get to and exceed 100G.

Q & A

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