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Home > Network/Internet > Running out of IP addresses? IP leasing is the new standard

Running out of IP addresses? IP leasing is the new standard

IP addresses are a limited source and the demand is constantly rising, especially unexpected shift to online during the COVID pandemic. Can IP leasing be the best solution we have?

Erdem Yasar by Erdem Yasar
August 9, 2021
in Network/Internet
2 min read
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Running out of IP addresses IP leasing is the new standard
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The internet is running out of unallocated IPv4 addresses. It is called IPv4 address exhaustion and it is now something new. The exhaustion was anticipated in the late 1980s. IPv4 address exhaustion was one of the main reasons behind the deployment of IPv6 protocol and now they can both coexist on the internet. Mobile devices, always-on connections, and the increased popularity of the internet are considered the main reasons behind this fast depletion.

Online shift during the COVID pandemic also accelerated the depletion of IPv4 addresses. With the pandemic, more and more people switched to working remotely and as a result, people are using more devices that are connected to the internet. In May of 2021, the price for an IPv4 address reached an all-time high at $36. This unexpected change also increased the importance of finding a new solution.

Selling or leasing

Paulius Judickas, Head of Sales at IPXO
Paulius Judickas, Head of Sales at IPXO

All-in-one IP marketplace, IPXO introduced a new IP monetization model which is claimed to be the new industry standard. IPXO stated that IP leasing can provide consistent long time revenue, instead of selling the IP for a bigger one-time revenue.

Paulius Judickas, Head of Sales at IPXO stated that with a $30 selling price per IP, selling brings $1,966,080 revenue. On the other hand, leasing annual revenue is $353,894. However, it also gains around 25% per year. Thus if a company decides to lease the IP addresses at least for a year, it would raise the total revenue to 2,811,494, which is a 43% increase.

Paulius Judickas, Head of Sales at IPXO said,

“Leasing enables unused IP resources to reenter the market, alleviating the strain of the ever-growing number of devices connected to the network. Consequently, it creates the opportunity for businesses to suffice their IP needs and continue scaling operations without placing additional pressures on the market. This allows for deliberate resource allocation, leveling out some of the network stress and enabling more controlled internet expansion.”

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Tags: IPXO
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Erdem Yasar

Erdem Yasar

Erdem Yasar is a news editor at Cloud7 News. Erdem started his career by writing video game reviews in 2007 for PC World magazine while he was studying computer engineering. In the following years, he focused on software development with various programming languages. After his graduation, he continued to work as an editor for several major tech-related websites and magazines. During the 2010s, Erdem Yasar shifted his focus to cloud computing, hosting, and data centers as they were becoming more popular topics in the tech industry. Erdem Yasar also worked with various industry-leading tech companies as a content creator by writing blog posts and other articles. Prior to his role at Cloud7 News, Erdem was the managing editor of T3 Magazine.

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