The sustained growth of data traffic volume calls for an introduction of an efficient and scalable transport platform for links of 100 Gb/s and beyond in the future optical network. In this article, after briefly reviewing the existing major technology options, we propose a novel, spectrum- efficient, and scalable optical transport network architecture called SLICE. The SLICE architecture enables sub-wavelength, superwavelength, and multiple-rate data traffic accommodation in a highly spectrum-efficient manner, thereby providing a fractional bandwidth service. Dynamic bandwidth variation of elastic optical paths provides network operators with new business opportunities offering cost-effective and highly available connectivity services through time-dependent bandwidth sharing, energy-efficient network operation, and highly survivable restoration with bandwidth squeezing. We also discuss an optical orthogonal frequency-division multiplexing-based flexible-rate transponder and a bandwidth-variable wavelength cross-connect as the enabling technologies of SLICE concept. Finally, we present the performance evaluation and technical challenges that arise in this new network architecture.