Five ways IPoDWDM will reshape optical networks in 2026

As demand for bandwidth and AI-driven connectivity surges, IP-over-DWDM is moving from niche to mainstream. Here’s how it will transform optical networks in the year ahead.
Stefan Voll
Arrows

The way networks are built is changing fast. With cloud-scale traffic and AI workloads pushing optical infrastructure to its limits, service providers are rethinking how they design and operate transport networks. IP-over-DWDM (IPoDWDM) has already proven its value in reducing complexity and improving scalability, but the next twelve months will mark a turning point. From pragmatic management models to next-generation optics, here are five trends that will define IPoDWDM in the coming year.

1. Scaling IPoDWDM as AI-driven traffic reshapes demand

AI-driven traffic growth is creating unprecedented demand for high-capacity interconnects. Beyond traditional data center interconnect (DCI), AI clusters now span multiple physical locations, requiring seamless optical connectivity between back-end switches. All of this is powered by IPoDWDM. At the same time, more communication service providers (CSPs) are moving from trials to mainstream deployments and IPoDWDM capabilities are now a standard requirement in many RfQs.

Prediction: IPoDWDM will become a default requirement in CSP tenders and AI-driven DCI will dominate investment priorities.

2. Normalizing coherent pluggables across routing platforms

Expect nearly ubiquitous support for coherent pluggables across routing platforms, with 100ZR, 400ZR/ZR+ and 800ZR+ widely available and early plans for 1.6T optics already underway. ROADM architectures are also becoming more IPoDWDM-friendly, with simplified add/drop structures and direct connections to ROADM degrees to maximize reach and optical budget. Meanwhile, IP-optimized OLS solutions such as fully automated point-to-point systems are gaining traction for their simplicity and scalability.

Prediction: 1.6T coherent optics will move from roadmap to reality and two DWDM designs will support scaling: fully automated point-to-point systems and simplified ROADM-based designs.

IPoDWDM is no longer optional – it’s becoming the backbone of modern optical networks.
3. Making IPoDWDM operational with pragmatic management models

While hierarchical controller models remain the long-term vision, most operators are taking pragmatic steps to integrate IPoDWDM into existing workflows. Some rely on manual coordination between IP and optical teams, while others use optical controllers or custom data exchange scripts. The goal is to maintain operational consistency across legacy and IPoDWDM services while building toward automation and multi-layer visibility.

TIP-based hierarchical controller frameworks remain the reference architecture, but most CSPs acknowledge that these models are not yet practical and are adopting interim solutions such as tool-based integrations or shared databases to bridge IP and optical domains.

Prediction: Expect hybrid approaches with manual processes combined with incremental automation rather than full controller integration.

4. Capturing real cost savings through simpler optical architectures

The biggest economic win remains the shift from embedded optics to coherent pluggables. Whether hosted in routers or thin transponders, these modules deliver significant cost efficiencies. Operators are also streamlining sourcing by partnering with OLS vendors for optics, reducing risk and simplifying lifecycle management. Expect this trend to grow as networks scale and operators seek fewer integration headaches.

Prediction: More operators will source optics from OLS vendors to simplify operations and reduce risk.

5. Evolving networks steadily rather than chasing a single breakthrough

Expect steady evolution rather than a single game-changer. CSPs will continue to mix IPoDWDM with thin transponders, adopt pragmatic management models and push toward higher-capacity optics. The next big challenge is extending automation and visibility across disaggregated domains without adding complexity. Success will hinge on open standards, robust optical control and collaboration across the ecosystem.

Prediction: IPoDWDM will become the foundation for multi-layer automation strategies, but full convergence will remain a work in progress.

Looking ahead

IPoDWDM is no longer optional. It’s becoming the backbone of modern optical networks. By embracing these trends, operators can build infrastructure that scales with demand, supports diverse services and stays ahead of the curve in the year ahead.

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