- AWS has developed an updated version of its in-house DWDM optical transponder technology
- It isn't just tackling metro routes, but also long-haul transport between its data centers
- Having more control over the software and hardware stack will boost security, reliability and automation efforts, an AWS exec said
AWS wants more out of its fiber infrastructure as AI places more demands on its data center networks. But it’s not waiting for optical vendor partners to deliver solutions. The cloud giant has built new in-house transponder tech for long-haul routes to boost security, reliability and aid efforts to automate its global network.
“The primary benefit comes from full control of all of the software running on the system. This allows us to verify the security of every byte of code, update the software rapidly with improvements, and to deeply integrate the system with our network management systems,” Matt Rehder, VP of Core Networking at AWS, told Fierce. “The other benefit is control over the hardware design and manufacturing, which enables us to improve reliability and guarantee continuity of supply.”
This level of control over both the software and hardware also drastically enhances “our ability to automate how capacity is installed and managed.”
The hyperscaler’s development efforts date back to 2020, when it first began work on its in-house dense wavelength division multiplexing (DWDM) system with an initial focus on metro networks. It began work on an updated version of the tech in January 2024 to improve fabrication and resilience, increase flexibility in its data transmission rates and unify its architecture across data center, metro and long-haul connections.
By February 2025, AWS had deployed the upgraded iteration on its metro networks. The long-haul iteration of the transponder took a bit more time, with the first 1,500-kilometer connection going live in July.
Amazon said the first deployment of its proprietary long-haul transponder delivered a 73% increase in bandwidth and a nearly 35% reduction in power consumption compared to its vendor-sourced gear. It is now planning to rapidly scale deployments globally.
According to Rehder, AWS’ DWDM transponders support any type of fiber and varying levels of bandwidth via the “latest generation of DWDM technology.”
“There is no one right size when building the global scale AWS network so our system offers full flexibility to support multiple technology generations, which allows us to interconnect with existing capacity,” he explained when asked whether AWS was targeting 100G, 400G, 800G or beyond.
Whitebox movement
Asked about the significance of AWS' announcement, Dell'Oro Group VP Jimmy Yu told Fierce "The concept of whiteboxing has always been popular with cloud providers," but until now they've stuck to switching rather than optical technology. "This is the first significant whitebox of optical systems that we’ve seen in the market," he said.
AWS did not name the vendor supplying photonics for its new transponder system. But a photo of its new transponder sled shows a module that bears a strong resemblance to Cisco's CIM 8 module.
Yu couldn't comment on the resemblance, but did note that a ramp in Cisco's CIM 8 shipment volumes from Q1 to Q2 for an unnamed hyperscale customer appears to correspond with AWS' publicly stated deployment timeline.
An AWS representative told Fierce that it uses "multiple suppliers for photonic components," but declined to disclose specific suppliers.
Market impact
Despite softness in 2024, the optical transport market rebounded in early 2025 with a growth rate of 14% in Q5 2025, data from Dell’Oro Group showed. A large chunk of that growth came from cloud providers, with Yu noting that cloud provider purchasing of DWDM systems was up 60% YoY, while the total market was up only 5% in the first half of 2025.
Looking ahead, the analyst firm tipped the optical transport market to hit $19 billion by 2029, with about half of the market attributed to long haul DWDM systems. Spending on DWDM long-haul kit for data center interconnect is expected to increase at a compounded annual growth rate of 15% over the forecast period.
"[Cloud providers] are driving the recovery of the market and a large percentage of the growth. So, in that way, it would be significant if more cloud providers decided to do whiteboxing. It would be a drop in pricing over time," Yu said.
But Yu said the question of whether or not other hyperscalers will follow suit is one he just can't answer.
"My gut tells me no, but one thing I’ve learned about cloud providers is when they’re motivated, they do some stuff that surprises me," he said. "They count every dollar. If they can save a few dollars per item and they’re buying millions of them, they’re saving millions."
While Ciena, Nokia and Cisco – which are the top vendors in the optical transport market – may be losing out on value-add revenue from a potentially major customer, they at least don’t have to worry about AWS becoming a competitor. Asked if AWS would ever start selling its homespun tech stack, Rehder said no.
“The existing DWDM vendors do a great job supporting the diverse needs of the market. Our focus is providing the best network for AWS customers,” Rehder told Fierce.
11/19/2025 2 pm ET: This story has been updated to include a comment from AWS about its photonics supplier.