One of the fundamental requirements of LPO (Linear-drive Pluggable Optics) is to shorten the distance of electrical inter-connections and POETs optical engines are excellent in this capability.
From the AGM transcript:
Particularly with Foxconn, we are working in parallel on both conventional transceivers and solutions for linear pluggable optics, called LPO, which eschews the DSP and saves significant power consumption. We believe LPO will be the future of optical transmission once the kinks are worked out due to the large reduction in power consumption for LPO modules.
Given the shift in demand, especially with the likes of Foxconn, Luxshare, and a third to be named supplier
Andy Bechtolsheim Arista Networks
https://www.youtube.com/watch?v=zTGM_io7Uks&t=515s @ 8:24 with conclusion @ 20:00. It's kind of dry but there is very relevant info as to the benefits.
Andy Bechtolsheim at POET OFC booth
https://www.youtube.com/watch?v=AdkwdjUA4-c @ time 0:24