Four key trends accelerating the shift to open DCI networking with 400ZR and 800ZR

This shift raises key questions. How should networks be structured to make the best use of 400ZR and 800ZR? What’s the most cost-effective upgrade path? And how can a multi-vendor network be managed efficiently? Before answering these, let’s take a closer look at the trends fueling the move toward open networking.

1. More capacity – less cost – now possible with 400ZR and 800ZR

Data consumption is rising, along with growing demands for duplication, while applications like AI workloads and real-time analytics are demanding lower latency. As a result, many organizations are realizing their existing data center interconnect (DCI) networks are no longer sufficient. As capacity needs grow exponentially, enterprises must find ways to scale without increasing costs at the same rate, balancing expenses such as fiber infrastructure and power consumption.

Many enterprises and internet exchanges recognize significant potential in 400ZR and 800ZR to increase network capacity. ZR-compliant optics provide the flexibility to operate in 100G mode (100G IP over DWDM) as well as at 400G or 800G, allowing seamless scalability. Enterprise DCI and peering networks typically require substantial capacity but do not face the extreme performance demands associated with long-haul networks. Consequently, optical networking equipment optimized for long-haul applications might not deliver optimal value. Therefore, optimizing cost per GB should be central to evaluating solutions for structuring or upgrading enterprise DCI infrastructure.

2. Making traffic flows more efficient

For years, enterprises and internet exchanges were often required to deploy transponder-heavy architectures for data center interconnect (DCI) due to the limitations of proprietary optical networking solutions. These legacy architectures relied on separate transponders for wavelength conversion and signal regeneration, increasing costs, equipment footprint, and power consumption. This resulted in little flexibility, as vendor-specific line systems often required additional hardware for even incremental capacity upgrades. As a result, scaling DCI capacity was not only expensive but also required additional rack space and energy, making traditional architectures inefficient for modern enterprise and high-capacity internet exchange demands.

Forward-thinking enterprises and internet exchanges are now adopting more flexible approaches to maximize efficiency and scalability. Innovations like IP over DWDM and ZR optics, including 400ZR and 800ZR, make it possible to integrate DWDM functionality directly into routers and switches, enabling a compact and power-efficient solution. This reduces complexity, optimizes network scaling and lowers the cost per GB for DCI expansion. At the same time, open line systems provide enterprises with vendor-agnostic control over their transport networks, eliminating reliance on proprietary architectures and offering greater flexibility in managing network growth.

3. Upgrading to 400ZR/800ZR – without overhauling your entire network

When planning a move to 400ZR or 800ZR, one of the biggest concerns is how much existing equipment can still be used. A full-scale replacement isn’t just costly – it’s unnecessary. That’s why a growing trend is to integrate 400ZR and 800ZR into existing infrastructure, making the most of current line systems and routers. Many organizations are deploying 100G or 400G today while ensuring a smooth path to higher speeds, with 400G and 800G as the next step. With these upgrade paths available, scaling doesn’t have to be all or nothing – a phased approach allows for gradual expansion while keeping costs under control.

It’s also common sense that you can get more capacity at less cost by having the freedom to mix and match network elements from different vendors. With an open, multi-vendor architecture, you can select the most cost-effective components for your needs without having to replace everything else to accommodate them. This approach also helps future-proof your network and maximize ROI by ensuring that new investments conform to open standards and interoperate seamlessly with other vendors' equipment.

4. Simplifying network management

As enterprises scale their DCI networks, managing a mix of technologies and vendors can introduce complexity, making it harder to troubleshoot issues and maintain seamless operations. Without an efficient management approach, manual intervention increases, network operations become fragmented and scaling capacity can quickly become costly and difficult. 

To address these challenges, enterprises are increasingly turning to consolidated, automated and simplified management solutions. Open software-driven management platforms help simplify troubleshooting, streamline network operations and enhance control over infrastructure. By adopting these solutions, enterprises can ensure their DCI networks remain cost-efficient, scalable and easy to manage while avoiding the constraints of proprietary architectures.

Find the smarter way to scale your DCI network

Discover how to maximize your DCI capacity while minimizing costs in our guide “A smarter way to interconnect data centers”. The guide explores how you can take advantage of 400ZR, 800ZR and open line systems to increase capacity efficiently. Learn how DWDM enables cost-effective fiber utilization, how modern open line solutions fit seamlessly into IT environments and why automation and plug-and-play deployment simplify operations. With a future-proof approach, you can scale from 100G to 400G and 800G at your own pace while keeping costs in check.