IP Addresses
IP addresses are an essential piece of infrastructure for businesses across every industry. However, the shortage of IPv4 resources is making it difficult for companies to acquire enough addresses to meet their network connectivity goals. As a result, more and more organizations are opting to lease IP addresses instead of purchasing them outright. While each option has its own benefits, leasing offers significant cost reduction and accessibility, which makes it an attractive solution to the ongoing IPv4 scarcity problem.
Whether to purchase or lease purchase ip addresses is an important decision for any business, and one that depends on their specific needs and budget. Buying IPs involves a significant upfront investment, while leasing provides recurring costs that are more affordable for businesses with variable or unpredictable IP requirements.
Since the IPv4 pool began depleting in 2011, the price of IP addresses has skyrocketed. In 2022, the average price for a block of IPv4 addresses was $50, while the average price for an IPv6 address was $0.50. For businesses that need a large number of IP addresses, this can be a significant cost burden. Fortunately, leasing has become a popular alternative to outright purchase, with the average IPXO Marketplace lease price at just $0.50 per month.
Should I Lease IP Addresses Instead of Buying Them Outright?
The primary reason why many organizations opt to lease IP addresses is that the process is far faster than acquiring them through the RIRs. When you buy IP addresses, you’re required to submit a request and wait for an approval process that could take months or even years. When you lease IP addresses, you can access them within minutes and bring them up on any infrastructure in just 24 hours – significantly speeding up the time to market for new services.
Leasing also provides businesses with a flexible option when it comes to contract durations. When you purchase IP addresses, you’re committed to a set period of time – usually ranging from one to five years – whereas when you lease IP addresses, you can start with a much shorter term and then move up to a longer term depending on your business needs.
Regardless of your reasons for deciding to lease IP addresses, you must ensure that your organization is in compliance with the ARIN Number Resource Policy Manual. While ARIN doesn’t explicitly prohibit leasing, it does require that any scarce IP addresses obtained through a lease be used for networking connectivity purposes or returned to the holder after a predetermined amount of time.
When choosing an IP lease provider, look for a company that provides payment flexibility and does not include hidden fees or accumulative price increases. Additionally, make sure you understand what your responsibilities are as an IP lessee and how to report unused IPs. If your lease provider isn’t complying with ARIN policies, you may be subject to penalties that could impact your business in a negative way. Be sure to consult an experienced attorney who can help you ensure that your organization is compliant with all relevant regulations.
