Leasing IPv4 Addresses: Advantages, Disadvantages & How

Leasing IPv4 addresses for businesses’ needs has become very popular. The reason for this is that IPv4 exhaustion is something that will probably never end. Leasing IPv4 addresses has both disadvantages and advantages to the lessor and the lessee. Make sure to continue reading if you’d like to know more.

Advantages of leasing IPv4 addresses

Let’s start with the advantages of leasing IPv4 addresses.

1. New revenue for the lessor

If you have unused IPv4 addresses on hand, it might be a good business opportunity to lease those to other businesses. By doing this, you will be able to generate new income streams without having to sell your IPv4 addresses.

2. The lessee can save costs

Buying IPv4 addresses is getting more and more expensive. By leasing IPv4 addresses, a lessee can avoid having to make a big purchase. By leasing IPv4 addresses, instead of buying, a large amount of financial resources can be saved or used for other investments. This is especially useful for businesses that only need a few IPv4 addresses.

3. No long-term commitment

When renting or leasing IPv4 addresses, a long-term commitment is not always required. This means that IP addresses, for example, can be rented for 12 months, after which they can be renewed. 

4. Leasing is quicker than buying

Leasing IPv4 addresses is a lot quicker than waiting for months or even years for an RIR to allocate IP addresses to you. However, if you really want to buy, you can always buy through brokers.

Disadvantages of leasing IPv4 addresses

Now we’ve seen some of the advantages, let’s have a look at the disadvantages.

1. The lessor may need the IPv4 before the end of the term

One disadvantage of leasing IPv4 addresses is that the lessor may need the IPv4 addresses before the end of the term. However, one way to avoid the range being taken back before the end of the term is to create a fixed-term contract or agreement.

2. The lessee may misuse the IPv4 address

One disadvantage for the lessor is that a lessee might use the IPv4 address for malicious behavior or spam. This might cause blacklisting issues.

3. The lessee may end up paying more

If a lessee is renting an IPv4 address for a long time, they might end up paying more due to price increases. In the long term, buying IPv4 addresses might be a better option. However, some IPv4 providers offer price-blocks for long-term customers. If this is the case, you won’t have to worry about price increases.

How to lease IPv4 addresses

There are many different ways in which you can lease IPv4 addresses. One way to do this is through IPv4 providers such as Hostio Solutions. At Hostio Solutions, you will be able to rent IPv4 addresses with billing periods of 1, 3, 6 or 12 months. For long-term customers discounts and other benefits, such as price locks, are offered. If you’d like to know more about our RIPE IPv4 lease options, click here.

Conclusion

Even though we have a depleting pool of IPv4 addresses, the transition to IPv6 is moving at a snail’s pace. The gap between supply and demand quickly gave rise to the IPv4 brokerage market we have today, wherein buyers are matched to owners.

Whilst buying IPv4 addresses definitely has its advantages, IPv4 leasing makes a good solution for businesses that only need a few addresses, don’t want to make a big investment and want flexibility. 

Our parent company, Access2. IT Group B.V., is an official RIPE broker.

Contact us if you want to purchase or lease IPv4 ranges.

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