Ever since IPv4 exhaustion, these addresses have become a much-sought-after commodity. As a result, the price to acquire additional addresses has risen dramatically. To cut down on the cash flow impact of expanding IPv4 holdings, especially if IPv4 addresses aren’t required for an extended period of time or future needs are uncertain, other options are attractive.

IPv4 leasing is an option that might fit the bill. Depending on one’s needs, it may be a cheaper option while still fulfilling the same requirements as buying a block of IPv4 addresses. The benefits of a leasing option are significant and so warrant a close look.

What is IPv4 Leasing?

A company with IPv4 holdings can choose to lease its IPv4 address blocks instead of selling the ownership rights to them. Essentially, this means they can “rent” them out over a set period of time rather than passing them along to a new owner indefinitely.

The leasing decision is not unlike deciding whether to buy or rent a house. One can pay a large, one-time lump sum to own a house (or incur significant debt to do so) or pay a lower rate month-by-month to rent it. For shorter term living, or if long-term needs are uncertain, a rental option may save the most money in the long run and will preserve cash in the near term. Both considerations are important if future needs are uncertain or if cash (or affordable credit) is in short supply.

IPv4 Leasing vs. Buying

Either option may be beneficial if it aligns with a company’s needs. Depending on the nature of a company’s requirements, upcoming device rotations, and amount of capital available, one may be better than the other. Businesses should look to lease IPv4 addresses if:

  • The future scope of a organization’s needs is uncertain and likely to change
  • Cash flow is critical
  • IPv4 addresses are needed in the interim during IPv6 transitioning
  • They seek to save time and/or money by avoiding transfer fees

On the other hand, businesses should consider purchasing IPv4 addresses if:

  • Long-term growth seems assured
  • The price of IPv4 addresses are projected to rise
  • A significant number of websites will require IPv4 in the future
  • Investment potential

There are other factors that may play a role in the decision to lease or purchase IPv4 addresses. But overall, the preferences between the two options are governed by whether or not an organization has long-term certainty and the available funds for a purchase.

What Is an IPv4 Broker?

Much like buying or selling IPv4 addresses, these assets can also be leased through an IPv4 broker.

After IPv4 exhaustion, it became clear that IPv4 addresses were becoming a valuable resource since demand for them was high and rising despite their supply having run out. However, it was difficult for sellers to find buyers and vice versa, in addition to the hassle of drawing up their own contracts, completing transfers, moving funds and addressing other legal concerns.

This is why IPv4 brokers formed. They help companies who are interested in trading their IPv4 addresses find each other quickly and efficiently while taking care of the legal and regulatory sides of things, cutting down the time spent during the process. They quickly became a reliable way to buy and sell IPv4 addresses. If looking to buy, sell, or lease IPv4 addresses, finding a trusted IPv4 broker is the best way to go about it.

The Bottom Line

As far as leasing vs. purchasing IPv4 addresses, first gauge the scope and timelines associated with IP address needs. There are benefits for both options, in the form of saving money in the short term with leasing or saving in the long term by outright purchasing IPv4 addresses. Drawbacks in the form of money lost usually come from a mismatch of a company’s goals and choosing the less efficient option, e.g. purchasing IPv4 addresses when they’re only needed in the short-term.

To learn more about leasing vs. buying IPv4 addresses or getting started with either, contact us for more information.