Jimmy Yu

Vice President

Dell’Oro Group’s Advanced Research Report on DCI with IPoDWDM & WDM Systems monitors the Data Center Interconnect (DCI) market and key optical transport technologies such as IPoDWDM systems, ZR/ZR+ optical pluggable modules, and Disaggregated WDM systems, all designed for cloud providers. The report features quarterly tables and five-year forecasts for these segments, showing vendor market share by revenue and port shipments.

Optical transport technology for DCI is advancing through the development of ZR/ZR+ optical pluggable modules, which facilitate IPoDWDM and further enhance the disaggregation of the WDM network layer.

The research examines the major subsystems required for data center connections across metro and long-distance routes, utilizing coherent WDM technology for transponders and optical line systems (OLS). It also examines the use of pluggable ZR/ZR+ coherent modules in routers and Ethernet switches, an architecture often called IP-over-DWDM or IPoDWDM.

Disaggregation is reshaping how cloud providers and communication service providers build optical networks, offering greater flexibility in selecting network components and reducing vendor lock-in. Understanding the adoption of IPoDWDM and ZR/ZR+ optics helps industry participants assess market opportunities, technology transitions, and evolving vendor positioning.

The DCI with IPoDWDM & WDM Systems ARR aims to answer critical market questions, including:

  • What is the size of the data center interconnect market, what share is performed with IPoDWDM systems versus WDM Systems, and which vendors lead the market?
  • What is the market size for the main sub-systems (transponder unit, optical line system, ZR/ZR+ optical plug) that comprise a disaggregated WDM network?
  • What is the adoption rate of IPoDWDM, and how does it compare to traditional WDM transponder units? What is the price difference by wavelength speed?
  • How many ZR/ZR+ optical plugs shipped last quarter, and how many were used in a router and switch system?
  • Will demand for IPoDWDM continue to grow beyond metro DCI and hyperscale customers?

This report includes tables showing manufacturers’ revenue both quarterly and a 5-year forecast:

  • Market Segments: Data Center Interconnect (DCI), IPoDWDM, Disaggregated WDM, and ZR/ZR+ Optical Plug
  • Market Metrics: Vendor market share by revenue and port shipments
  • Port Speeds: 100/200/400/800 Gbps and 1.2/1.6 Tbps
  • Regional Coverage: Worldwide