Lease vs buying IP addresses – IPXO is the world’s first IP address marketplace that provides a perfect solution to those companies which are experiencing IPv4 shortage.
The cost per IP address was around $5 more than a decade ago, but that soon changed when IANA allocated the last block of IP addresses in2011. Many companies are now looking for ways to get their hands on the IP addresses to continue expanding their business with the world experiencing the shortage of IPv4 addresses.
The exhausting pool of the available addresses has caused IP address prices to skyrocket, as there is then 4% of the world’s supply of IPv4 addresses available for allotment.
Experts predict that the Ipv4 prices will more likely be increased by as much as 100% in the coming next 5 years. Ipv4 addresses are becoming a rare resource, and with Ipv6 not yet fully ready to replace it.
There are 4.3 billion IP addresses provided by Ipv4. It seemed that 4.3 billion Ipv4 would be sufficient for a time.
Companies such as Hewlett-Packard or Xerox hold a large block of IP addresses in their hands. As these companies have been allocated with more IP addresses than they required in the early days of the Internet now these companies appear as sellers of the IP addresses, when the classful network allocation method inefficient IP address block distribution.
Large corporations have owned more than 820 million unused Ipv4 addresses today, of which most of the part isn’t doing anything with them. There are still many new, upcoming, and expanding companies that need IP addresses are struggling to acquire them.
Transfer price analysis Ipv4(analysis of the IPv4 transfer price)
Though there is a shortage of Ipv4, the transition to Ipv6 is moving at a snail’s pace. Making Ipv4 addresses expensive commodities because of the situation that had been created leading to the widening gap between the supply and the demand of Ipv4 addresses.
The IP brokerage market was on the rise due to the shortage of available IP addresses. The first arrangement occurred when Sandra Brown brokered the sale of Nortel IP addresses to Microsoft.IP brokerage using their network and contact to match buyers to owners in the year 2011.
Approximately 350 million Ipv4 addresses were transferred in the span of the last five years. During this period, address prices were ranging between $18 to $25, and the prices gradually raised by 25-30% depending on the subnet size. The cost per IP address increased by 35%, reaching $ 25- $ 35 per IP by the year 2019.
One of the significant IP address buyers were hyper scalers, Internet Service Providers (ISPs), and IP transit providers. Such companies take over 93% of the Ipv4 transfer market share. Around 35 million Ipv4 addresses have been transferred alone during the year 2019.
At the same period, the majority of the industries that purchased 10K to 100K Ipv4 segments were data center operators, Internet Service Providers, and VoIP providers, which accounted for 5% of the IP address transfer market.
To purchase large quantities of Ipv4 addresses, small and medium-sized businesses generally don’t have enough financial resources.
What are the things that make leasing look so attractive?
Though buying Ipv4 addresses is an expensive proposition, leasing offers a cost-efficient solution for companies looking forward to developing their global presence. Moreover, leasing does not require a long-term commitment. For example, you can lease an IP address for 12 months. However, you can even renew the contract once the original contract has expired, if the IP holder agrees to continue.
Because there aren’t enough IP addresses for sale, many businesses encounter a problem, so many of them are unable to buy them, even if they have the means to do so.
The creation of the IP transfer market and the market of lease IPv4 was due to the shortage of the Ipv4. Small as well as medium-sized businesses look at and go to the IPv4 lease market to acquire their IP addresses at an affordable price.
When purchasing IPs, RIRs require buyers to justify their Ipv4 requirements, due to the current scarcity of Ipv4. And, it’s a lengthy process as well.
Leasing doesn’t require changing the ownership. So, the faster and most efficient way to acquire IP addresses is by leasing. Determining the lease period which can be for a month to several years, makes leasing a cost-effective solution. Let’s go over some numbers.
The most popular in the Ipv4 lease market today are/24, /23, /22, and /19. In the year 2020, September, the cost per a /19 block was $0.39 per IP.
The Ipv4 transfer price has a direct impact on the Ipv4 lease price, without a doubt. Today you can get your IPv4 addresses by leasing them at 0.25$ per IP. However, in the IP addresses market, the higher the lease you have, the lesser you make the payment.
Businesses can conserve large amounts of financial resources by leasing IP addresses instead of buying them. When you got to lease IP addresses, you enter into a fixed-term contract, which is ideal if you don’t want to commit to leasing IPs for an extended period. The cost of owning Ipv4 addresses makes leasing a more attractive option to meet your IP resources requirements at a low price.
The minimized risk of getting blacklisted IPs due to or spam is another best benefit of leasing an IPv4 address. Instead of waiting for months or years to get RIR for the allocation of your IP address, you can get them real fast by leasing IP addresses. This is yet another advantage of taking IP addresses on lease.
There are not enough available free IP addresses to go around, as we are approaching 2021.
It is no secret that the shortage has made the IPv4 market a major challenge for companies that are trying to acquire IPv4 resources to expand their operations. The IP address lease market is now in a state that companies need Ipv4 resources with a solution, which is good news.
The world’s first IP address marketplace that provides a unique Ipv4 lease platform with a diverse selection of subnets is IPXO. The IPXO Marketplace is an easily accessible and cost-effective solution, allowing companies to lease Ipv4 subnets at reasonable prices, affording them to develop their businesses.
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