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
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.”