The Advantages and Risks of Leasing IPv4 Addresses

2020-07-31 06:24:51


        With the price of IPv4 rising, there are some advantages if you become a lessor. Firstly, you may extend predictable revenue. By leasing your IPv4 addresses, it creates a chance to monetise IP addresses and sell an IP block for a better price in the future versus in the current market. The lessor can keep the IPv4 block in case of future need.

        Other than lessor, the lessee (the one receiving the IP address block) able to get some advantages such as the company can utilise their capital for other investments, which offsets the cost of the lease as they see their return on that capital. Besides, It is sometimes preferable to use OpEx instead of CapEx.  Additionally, it allows a company to align their expenses more closely to their revenues. While in process of renumbering, it is sometimes helpful to have an unused block to renumber it. This way old space can be reclaimed and reorganised before being reused. Other than that, while in process of migrating to IPv6, leasing is the perfect solution to acquire temporary IP addresses, rather than spending extra capital, simply to gain unneeded IPv4 addresses. 

         As with any sort of leasing agreement, it is critical to take note that there are also risks with leasing. The potential risks may include: 

    1. The lessor needing the addresses before the end of the term.

    2. The lessee needing the addresses longer than the term.

    3. A vicious or inattentive lessee may allow the addresses to be used for spam or malicious behaviour. This might cause blacklisting traffic from those addresses and the address may be unusable until the listings have been cleaned up.

    4. The cost of leasing can also be higher than buying addresses in long-term.  

        LARUS has the best IP address solutions that caters to your business needs. We have professional brokers to mitigate all of these risks and ensure all our clients are happy with their agreement and our services. Please contact us if you have further questions, we will be pleased to answer you!