Starting from 2011, the concerns towards IPv4 address exhaustion never end. Most of the companies are trying to lease IPv4 address from the public for their business need.
Hence, this becomes a business opportunity for those who have unused IPv4 address on hand. They are leasing their unused IPv4 address to generate revenue.
Through leasing IPv4 address, the lessor and the lessee both get advantages and disadvantages at the same time. If you like to know more, make sure you continue reading. We are going to discuss the advantages, disadvantages, and how to lease IPv4 address.
Generate new revenue for the lessor
By leasing IPv4 address, the lessor can monetize IP address and sell an IP block for a higher price in the future versus in the current market. The lessor can keep the IPv4 block in case of future needs.
The lessee can save the cost of buying IPv4 address
- The lessee can use their capital for other investments, which offsets the cost of the lease as they see their return on that capital.
- The lessee can align its expenses more to its revenues. While in process of renumbering, it is sometimes helpful to have an unused block to renumber it. They can claim old space and reorganize it before reusing them.
- Besides that, during the preparation of migrating to IPv6, leasing is the best solution to get the temporary IP address. This helps to save extra expenses to get unneeded IPv4 address.
The lessor needing the IPv4 address before the end of the term.
The lessor may urgently need the address before the end of the term. If there is a contract, it is not applicable unless you reach a mutual agreement with the lessee. Otherwise, you will need to wait till the end of the contract, then only have the IPv4 address back.
The lessee needing the IPv4 address before the end of the term.
Due to the uncertainty, the lessee may need the IPv4 address for ongoing business. They will need to discuss with the lessor the availability of the IPv4 address and may get rejected by the lessor.
The lessee may misuse IPv4 address.
A vicious or inattentive lessee may use the address for spam or malicious behavior. This might cause those address being blacklisted and the address may be unusable until the listings have been cleaned up.
The lessee might be paying more compare to buy IPv4 address.
If the lessee considers utilizing the IPv4 address for the long term, it is not a good choice and will hurt the financial status. It is recommended to buy IPv4 address to ensure the sustainability of the business.
Choose the right IP specialist.
This is the starting point of your leasing journey. To ensure your leasing process goes well all the time, make sure you choose the IP specialist that handles it from start to end.
The company should be IP specialist experts in rules & regulations of IP, bargaining price, provides transparent servicing fees, and obtain a high number of IP address on hand.
Evaluate IP block reputations and identify blacklists
IP specialist will check through the RIR registration records and make a verification check on ownership of IPv4 address.
They also have to check on the usage, reputation, and inaccuracies of the IP in the RIR records to avoid any issues in the future.
Setting up the terms of the lease agreement
After the evaluation, the IP specialist negotiates with the two parties to develop the leasing agreement, working on the price, lease length, time, currency, and compliance with applicable regulations.
The IP specialist will create the invoices and ensure a smooth payment process between the two parties.
Issue of LOA
Once the payment is received, the lessor will provide a Letter of Authorization (LOA) and the IPv4 address ready to use by the lessee.