IPv4 leasing allows a business to use a block of public IPv4 addresses for an agreed period without purchasing permanent ownership of the address space. Businesses typically pay a recurring fee for the IPv4 resources and may also require routing, bandwidth, BGP, reverse DNS, colocation and other network services to make those addresses operational.
For companies that need hundreds or thousands of public IP addresses, leasing can provide a flexible alternative to purchasing IPv4 address space outright.
Why Do Businesses Lease IPv4 Addresses?
IPv4 addresses remain an important part of Internet infrastructure.
Although IPv6 adoption continues, enormous portions of the Internet still depend upon IPv4. Businesses operating servers, networks, applications and specialized Internet infrastructure may therefore require dedicated public IPv4 resources.
The problem is scarcity.
The original pool of freely available IPv4 addresses has been exhausted. Organizations requiring additional address space generally need to obtain it from existing address holders or work with providers that already control IPv4 resources.
Leasing allows a business to obtain temporary use of IPv4 resources without making the capital investment associated with purchasing address space.
Common reasons businesses lease IPv4 addresses include:
- Server and application infrastructure
- SaaS platforms
- Web-data infrastructure
- E-commerce monitoring
- Search and advertising intelligence
- Cybersecurity research
- Enterprise VPN infrastructure
- Network testing
- IoT applications
- Private cloud infrastructure
- Disaster recovery
- Distributed enterprise applications
- Legacy IPv4 systems
Every application has different technical and network requirements.
How Does IPv4 Leasing Work?
At a basic level, IPv4 leasing involves an address holder making a defined block of IPv4 resources available to another organization under a contractual agreement.
However, having permission to use the addresses is only part of the deployment.
Those addresses must also be routed onto the Internet.
Depending upon the arrangement, the addresses may be:
- Routed through the provider's existing network
- Announced using BGP
- Assigned to colocated servers
- Routed to customer equipment
- Integrated into dedicated network infrastructure
This is why businesses evaluating IPv4 leasing should consider more than the price per address.
The network behind those addresses matters.
Common IPv4 Block Sizes
IPv4 resources are commonly discussed using CIDR prefix notation.
Examples include:
| Prefix | Total IPv4 Addresses |
|---|---|
| /24 | 256 |
| /23 | 512 |
| /22 | 1,024 |
| /21 | 2,048 |
| /20 | 4,096 |
| /19 | 8,192 |
A business requiring approximately 500 addresses, for example, might consider a /23.
An organization requiring approximately 2,000 addresses might require a /21.
The appropriate allocation depends upon the application, network design, utilization and provider availability.
IPv4 Leasing vs. Buying
Leasing and purchasing solve different business problems.
Purchasing IPv4 address space may make sense for organizations that require permanent control of a large address portfolio and are prepared to make the associated capital investment.
Leasing can make more sense when an organization:
- Wants to preserve capital
- Needs address space quickly
- Has a temporary requirement
- Expects requirements to change
- Wants the ability to scale
- Does not need permanent ownership
- Wants IPv4 combined with managed infrastructure
Leasing also allows businesses to test a deployment before making a larger infrastructure commitment.
IPv4 Leasing From a Marketplace vs. a Network Operator
This is an important distinction.
Some companies operate primarily as IPv4 marketplaces. Their role is to connect organizations that own address resources with organizations that need them.
Another approach is to obtain IPv4 resources directly as part of infrastructure provided by a network operator.
In that arrangement, the provider may supply not only IPv4 resources but also:
- Internet routing
- BGP
- Bandwidth
- Colocation
- Server infrastructure
- Power
- Reverse DNS
- Monitoring
- Remote hands
- Network engineering
NetWest focuses on this managed infrastructure model.
What Should You Ask Before Leasing IPv4 Addresses?
Before selecting an IPv4 provider, determine exactly what the business needs.
Important questions include:
How many IPv4 addresses are required?
Determine whether the application needs a /24, /23, /22, /21 or another allocation.
Who will route the addresses?
An IPv4 allocation cannot simply exist by itself. Determine how the addresses will reach the Internet.
Is BGP required?
Some deployments require BGP routing or integration with an autonomous system.
How much bandwidth is required?
A deployment consuming 50 Mbps is very different from infrastructure continuously consuming multiple gigabits.
Where will the servers operate?
Determine whether equipment will operate in your facility, a third-party datacenter or the provider’s colocation environment.
Is reverse DNS required?
Applications may require PTR/rDNS management.
What are the acceptable-use requirements?
Responsible network operators protect their address reputation and will establish rules governing prohibited activity.
Why IPv4 Reputation Matters
IPv4 addresses accumulate history.
Addresses associated with spam, malware, fraud, abusive automation or other malicious activity can develop poor reputations.
That can result in:
- Blocklisting
- Website restrictions
- CAPTCHAs
- Email-delivery problems
- Fraud warnings
- Reduced network trust
Businesses should therefore consider the history and management of IPv4 resources—not simply their availability.
NetWest considers IPv4 reputation an important network asset and reviews specialized IPv4 deployments accordingly.
Managed IPv4 Infrastructure
For many businesses, the best question isn’t simply:
"Where can I lease IPv4 addresses?"
A better question is:
"Who can provide the IPv4 addresses and the infrastructure required to operate them?"
NetWest Online combines dedicated IPv4 resources with network infrastructure for qualified business applications.
Depending upon requirements, a deployment can include:
- Dedicated IPv4 resources
- NetWest network routing
- BGP engineering
- Internet bandwidth
- Server colocation
- Power
- Reverse DNS
- Network monitoring
- Remote hands
- Network engineering
Learn more about Managed IPv4 Infrastructure.