Leasing VS Buying IPv4 address

Since 2016, IPv4 exhaustion is causing internet users to hunt for IPv4 address aggressively.  Currently, there are two ways to get IPv4 address through the marketplace which are leasing IPv4 address and buying IPv4 address. There are many factors to consider to make the correct decision because they will impact the growth of the company. We are going to discuss the difference between leasing and buying by comparing the costs, flexibility, and stability.

1. Costs: Leasing IPv4 address is cheaper

Before the company acquires new assets, the first question that pops out from the decision-maker is the cost. The cost is impacting the financial flexibility and the future growth of a company.

IPv4 prices have increased to around 55USD for an IPv4 address in 2022, it will be a high cost if a company is going to purchase IPv4 address in classes. The high cost will be impacting the company's financial flexibility and increase the cost of the products.

The cost to lease IPv4 address is around 0.49USD/month for an IP address, it is much cheaper than buying an IPv4 address. The low cost can help to improve the financial flexibility, For example, the company may allocate more budget on the product development or marketing.

Hence, leasing IPv4 address is a better option if the main consideration is cost. You can learn more about how leasing IPv4 can benefit businesses here.

2. Flexibility: Leasing IPv4 provides more flexibility

Flexibility is important for a company because there are many uncertainties in the market. A company should have the ability to handle it anytime for generating more profit or reduce losses.

Once buying IPv4 address, it will become the fixed assets of the company. However, if there is any problem that occurs on the company or product till have to stop the operations, it is hard to sell IPv4 address and get the amount spent right away but need to wait more than a month. This is causing less financial flexibility for the company.

Leasing IPv4 address can be based on monthly or any other duration discussed with the lessor. Hence, this provides more flexibility on utilizing the IPv4 address and even can extend the leasing duration anytime if needed. If the company is having difficulties in financial, they may discuss with the lessor in terms of delay in payment and others.

Hence, leasing IPv4 address provides more flexibility for the company and product development. You can learn more about why leasing IPv4 address but not buying here.

3. Stability: Buying IPv4 address is more stable

Stability is an important factor for the development of the company. The more stable the company, the larger the space to grow and develop.

Although leasing IPv4 address provides more flexibility but it is still not a permanent asset. When is the leasing period finished and the company wished to continue the leasing, the lessor may choose to stop the leasing or increase the prices. Then, the company will need to look for another lessor or need to pay more to lease IPv4 address.

Buying IPv4 address means the company owns the IPv4 address. The company will be free from the uncertainties for example contract ends but the lessor not likely to continue leasing, the lessor increases the leasing price when the contract renews, and so on.

Another benefit of buying IPv4 address is the price of IPv4 address is increasing yearly, this will increase the value of company assets. If you like to buy IPv4 address, you may refer to the article here.

Conclusion: Leasing and buying has their advantages

When you are deciding to lease or buy IPv4, it is advised to consider the growth of the company and the financial situation of the company. Both options provide different impacts on the company now and in the future. If you are not sure about it, feel free to leave your contact below or live chat with our specialists at the right bottom, we will give you the best advice and assistance.