xWDM stands for any form of Wavelength Division Multiplexing (WDM). WDM is a technology that multiplexes a number of optical carrier signals onto a single optical fiber by using different wavelengths (i.e., colors) of laser light. This technique enables bidirectional communications over one strand of fiber, as well as multiplication of capacity. Common forms of WDM include CWDM (Coarse WDM) which has wider channel spacing and is generally used for shorter distances, and DWDM (Dense WDM), which has narrower channel spacing and is used for longer distances. xWDM is a general term encompassing all these WDM variants.
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