The price per IP address was $5 in 2011 when IANA assigned the last block, but that soon changed. Many companies are looking for IP addresses as the world struggles to supply IPv4 addresses. By procuring IP addresses, companies can further expand their operations.
IP networks, such as the public internet, are uniquely identified using Internet protocol (IP) addresses. There are four octets (1 octet = 8 bits) in the IPv4 address space, 32 bits long. Approximately 4.3 billion (B) unique addresses are associated with IPv4. Yet, people had no idea how broad the internet would become when IPv4 was first proposed in 1980. A few years ago, it was impossible to imagine that smartphones, wearables, and drones would require IP addresses.
IPv4 address prices have risen dramatically due to the diminishing pool of available IPv4 addresses. The current IPv4 address availability is less than 4%.
IPv4 addresses will become scarce in the coming years, and with IPv6 not yet fully developed, IPv4 prices could dramatically increase. Consequently, if IP addresses are still on the rise, it’s prudent to examine IPv4 transfer and lease prices.
The IPv4 prices have risen for a variety of reasons, but the circumstances are different. IPv4 addresses number 4.3 billion, and the number can’t be higher than that. In our world, the limit of a resource gets its value based on the size of its demand and its limited supply, just like every other finite resource.
What role does IP address leasing play in addressing the IPv4 shortage?
IANA and RIRs handle Internet address management, and domain names are assigned to local internet registries by these entities.
Provider independent addresses (PI) and Provider aggregation addresses (PA) are two different IPv4 addresses. ISPs can switch between PI and PA addresses, but not the other way around. IP leasing markets are primarily concerned with PI addressing. Small and medium businesses (SMBs) and individuals can acquire Pennsylvania IP addresses from their internet service providers. IP addresses can be assigned to companies by the RIRs, but larger businesses are more likely to obtain them. IP addresses can be leased by Internet service providers and private companies who have purchased blocks of them.
Why should you lease IPv4 addresses?
Companies looking to grow their global presence do not need to buy IPv4 addresses because leasing is a cost-effective solution. A leasing agreement is also not a commitment that needs to be kept over time. Leases of IP addresses are available for 12-month periods, for instance. Once the original contract is expired, you can renew it with the IP holder if the latter agrees.
Businesses often face a problem when it comes to IP addresses because there are not enough of them available, so they cannot buy them despite having the means to do so.
Because of IPv4 shortages, both IPv4 transfer and IPv4 lease markets were created. Small and medium businesses now have access to IPv4 addresses at an affordable price by renting them from the IPv4 lease market.
Because IPv4 is in short supply at the moment, RIRs require buyers to justify the reasons for needing IPv4. Ownership of IPv4 addresses is challenging to transfer between RIRs. It takes a long time as well.
Changing ownership is not necessary when leasing. Letting IP addresses is, therefore, a faster and more efficient method of acquiring them. In addition, leasing offers you the option of setting the lease period, ranging from one month to several years, making the decision cost-effective.
How does leasing IPv4 benefit businesses that are looking to lease this technology?
Previously I stated that scalability and growth in the IP space do not require a significant investment.
There is no need to wait for months or even years for your business to be placed on the RIR waiting list. Leasing IP addresses is an option.
Several payment structures are available to the business, and it pays every month.
A lease allows a business to use its capital to make urgent investments, as they will see returns on their capital over the lease term.
To better manage costs, a company’s expenses can be aligned with its revenues.
A block that is currently not being used for renumbering can sometimes be helpful when renumbering. Reclaiming and reorganizing old space will enable it to be reused.
Leasing is the best option for acquiring temporary IP addresses when migrating to IPv6, rather than wasting extra capital on IPv4 addresses that are not needed.
A team of specialists and support team available around the clock is available to assist with setting up your network and allocating IP addresses.
Our mission is to revolutionize the way companies and government organizations buy, lease, deploy, and manage IP addresses. We are dedicated to providing you with comprehensive, fast, and simple solutions to help you acquire IPv4 and IPv6 address ranges throughout various regions globally. We can help ease the process of acquisition and transfer securely and cost-effectively.