By: Mae Cornes

The issue of IP address exhaustion looms large over the tech world. The proliferation of internet-connected devices is depleting the available pool of IPv4 addresses, creating a critical chokepoint that could significantly affect businesses and consumers alike. More than a technical concern, this impending saturation can potentially drive up prices and alter how companies shape their network infrastructure.

Understanding IPv4 Address Exhaustion

Network administrators have been using IPv4 addresses, the numerical labels assigned to each device connected to a computer network, since the early days of the Internet. The designers originally designed the addresses to accommodate approximately 4.3 billion unique addresses. However, the explosive growth of the Internet and the increasing number of devices—from smartphones to IoT devices—have led to a significant depletion of available addresses.

According to industry experts, the gradual process of exhausting IPv4 addresses began over a decade ago. Organizations and internet service providers (ISPs) have scrambled to secure their allocations, often causing bidding wars for the remaining addresses. According to reports, as the supply dwindles, the increasing price of these addresses has reached $30 or more per address on the private market.

“IPv4 exhaustion is, at its core, a market challenge that will affect pricing and availability,” says Jake Brander, founder of Brander Group. “We can expect significant price increases that will impact businesses across the board, growing exponentially as the supply shrinks.”

The Implications of Address Exhaustion

The implications of IPv4 address exhaustion are significant. For businesses, the inability to secure sufficient IP addresses can hinder growth and limit the deployment of new technologies. Companies that rely on a large number of IP addresses for their operations may find themselves at a competitive disadvantage if they cannot secure the necessary resources, leading to potential bidding wars.

Moreover, the coming price increase for the older addresses could force many organizations to rethink their network strategies. Companies may consider alternative solutions, such as transitioning to IPv6, which offers a larger address space. 

However, many businesses have been slow to transition to IPv6 and are still relying on IPv4 due to compatibility issues and the costs associated with upgrading their infrastructure.

“The transition to IPv6 will eventually be necessary, but it requires significant investment and planning,” Brander explains. “For many businesses, the immediate concern is securing enough IPv4 addresses to maintain operations while they develop a long-term strategy.”

Navigating the IPv4 Market

As the market for IPv4 addresses becomes increasingly competitive, businesses are pooling funds and manpower to prepare themselves. Experts expect the demand for IPv4 addresses to rise, especially as more devices come online and the Internet of Things (IoT) expands. This will likely exacerbate the existing shortages and drive prices even higher.

Organizations looking to acquire IPv4 addresses will need to act quickly and strategically. Engaging with reputable brokers and understanding the market dynamics will be essential for securing the necessary resources. Brander Group, one of the prominent players in the market, offers services to all interested in buying or selling these assets.

“We’re here to help anyone understand the market and secure the IP addresses they need,” Brander states. “We support you every step of the way, from pre-approval, contracts, to fully managing the entire IPv4 transfer process.”

Published by: Nelly Chavez