Analysis reveals that there are currently more than 8.2 million IPv4 addresses globally. Many of those are obtained by large businesses or countries and out of reach of smaller businesses. Most small and new businesses are still having a tough time locating such addresses on an affordable and sustainable pricing basis.
It makes no sense for service providers to charge clients for unallocated IP address space when the cost of securing that space from their clients is so prohibitive. And the larger the company grows, the more problematic the situation becomes because of the escalating cost of management and support services, which rarely covers the full operational costs of running a business. It becomes difficult for a small organization to keep up with an expanding business and growing its current IP address portfolio.
Alternatives to buying IP space
This has forced many companies to look for alternatives. One of those alternatives is the concept of ‘PI’ or ‘IPv6’ addressing. This concept provides smaller users with a cheaper alternative to purchasing large IP address blocks. The use of this concept reduces the need for larger organizations to buy huge chunks of IP addresses to meet their requirements.
For many years, large organizations have been unwilling to sell their IP addresses on the open market because of the high costs involved. Part of this reluctance is related to a perception that the large marketplace will not have sufficient supply to satisfy the needs of all users. In addition, some argue that there is no realistic way of ensuring that the number of users will continue to grow in the foreseeable future. The other concern is that it will be difficult if not impossible to guarantee that the costs associated with providing services relating to the use of these IP address blocks will be able to remain at current levels. All of these concerns are related to the fundamental nature of the Internet and the need for certainty when it comes to meeting the needs of the global marketplace.
The use of an ISP-based service provided by the vendor, such as Vonage, allows businesses to provide their customers with the ability to connect at much lower rates than they can on their own. For example, even a small business can pay less than half of what it would cost for one to own and operate its own server in the current marketplace. Using a managed IPV6 platform, companies can bypass the need to manage their own IP address blocks by contracting with an IP leasing provider.
The use of this service by businesses allows them to control access to the Internet and effectively manage their own bandwidth. For companies that have experienced a recent lack of growth or are uncertain about the direction their business is headed in, this is an ideal solution to reducing costs and the current lack of predictability in the IP addressing marketplace. An internet user does not have to worry about whether they will be able to obtain an IP address block or not, since they are not required to do so under the terms of this type of service. For these reasons, many businesses are currently looking towards IPv4 lease as a means to deal with a current or future shortage of global address space.