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In this paper, we study the influence of technology, traffic properties and price trends on the optimized design of a reference IP-over-WDM network with rich underlying fiber topology. In each network node, we investigate the optimal degree of traffic switching in an optical (lambda) domain versus an electrical (packet) domain, also known as measure of node transparency. This measure is studied in connection to changes in traffic volume and distribution, optical circuit speeds and equipment cost. By applying variable design constraints, we assess the relative roles of the two distinct equipment groups, IP routers and optical cross-connects, with respect to resulting changes in cost-sensitive network architectures.

Optimal degree of optical circuit switching in IP-over-WDM networks