Since 2011, there have been concerns about the exhaustion of IPv4 addresses. Almost all the companies try to lease IP addresses of this type from people for business requirements. Therefore, business-wise, leasing is an opportunity for parties with unused IPv4 addresses in stock. Those parties monetize their unutilized IPv4 addresses through leasing.
With leasing, the lessee and lessor get benefits and disadvantages. If you wish to learn more, be sure to keep reading.
The Pros
Generates Fresh Revenue For Lessors
From the lessor’s viewpoint, leasing IPv4 addresses allow monetizing the unused addresses as well as selling an IP address block at a higher rate down the road and not in the present market. The party could keep the IP address block if future needs arise.
Allows The Lessee To Save On Purchasing IPv4 Addresses
The lessee gets to utilize their capital to make other investments, offsetting the lease cost when they see a return on the said amount. They can align the expenses of leasing more toward its revenues. During the renumbering process, it is occasionally useful to get an unutilized block for renumbering it. The lessee can claim and reorganize the old space before using it again. Moreover, in the process of preparing to migrate from IPv4 to IPv6, the best possible solution to obtain the temporary Internet Protocol address is leasing. This will aid in saving extra costs to obtain unneeded IPv4 addresses.
The Cons
The Lessor Requiring The IP Address Ahead Of The Lease Term Completion
The lessor is likely to require the address urgently before the term completes. If an agreement is in place, and you and the lessee do not arrive at a mutual agreement, it would not be applicable. Or else, you would have to wait until the completion of the agreement to be able to get the address back.
The Lessee Requiring The Resource Before The Term Ends
The lessor is likely to need the IP resource for continuing business because of the uncertainty. The party should talk to the lessor about whether the address will be available, and the lessee is likely to reject them.
The Likelihood Of The Lessee Misusing The Address
An inattentive or vicious lessee is likely to utilize it for malicious activity or spam. It may result in blacklisting traffic that comes from the address, plus the address is likely to be unusable up to the time the listing is removed.
Is Leasing IPv4 Addresses A Good Idea?
It would be a stable source of income for you, the lessor, if you find a lessee ready to work with you in the long run. The IPv4 lease option can aid the lessee in saving costs if they seek short-term use.