A Complete Guide to Static IPs: Costs, IPv4, IPv6, and More

A static Internet Protocol (IP) address is a fixed numerical identifier assigned to a device on a network, such as a computer, server, or router. Unlike dynamic IP addresses, which can change each time a device connects to the internet, a static IP remains constant — providing a reliable and consistent point of contact. 

This steadiness is invaluable for devices that need to be easily located over the internet, such as web servers, email servers, or networked devices requiring frequent remote access.

What Is an IP Address?

An IP address is a unique address that identifies a device on the Internet or a local network. It’ll look more like a string of numbers and dots (ex. 192.168.1.1) than your home address. “IP” in this instance stands for “Internet Protocol,” which is the set of rules governing the format of data sent via the internet.

The internet requires unique identifiers to differentiate between different devices and websites that send and receive data so that information is always routed to the right place. IP addresses are a core part of how the internet functions.

Why IPv4 Versus IPv6 Is Important to Businesses

When Internet Protocol version 4 (IPv4) was created, addresses were based on a 32-digit number. That creates a large set of possible numbers for each address — about 4.3 billion possible numbers. That should be enough, right? 

However, 4.3 billion will be nowhere near enough to satisfy the growing demand for IP addresses. This large but finite number of possible static IP addresses is rapidly approaching exhaustion. And when demand far exceeds supply, soon enough, you end up paying the price. 

Fortunately, the creation of Internet Protocol version 6 (IPv6) means we’re not locked into a situation where internet service providers (ISPs) charge ever-increasingly extortionate amounts to get you a bunch of static IPs. 

IPv6 addresses are based on a 128-digit number, which means the number of potential addresses is exponentially bigger (340 undecillion IP addresses if you don’t fancy doing the math). Based on current growth rates, IPv6 should provide IP addresses for a few thousand generations — enough to see us through a possible future apocalypse and the inevitable rise of our machine overlords, anyway.

The migration that every business will have to take, sooner or later, is no laughing matter. It’s a laborious project with both known and unknown variables to consider.

What Is IPv4? 

For simplicity’s sake, we described IPv4 addresses earlier as a 32-digit number. However, it’s more accurate to describe IPv4 addresses as four octets (8-bit segments) of binary code. These zeros and ones are used to describe a smaller number for each octet, which is the number we see when we pull up our IPv4 address — 129.144.50.56, for example. The binary octets (and their corresponding number values) are separated by periods.

Each binary octet can provide 256 different possible combinations, so the number value in the IP address we see will be between zero and 256. As we mentioned, the possible variations amount to 4.3 billion unique numbers.

What Is IPv6? 

IPv6 addresses are constructed using the same principles of grouped sections of binary code. However, rather than four groups of eight binary digits, IPv6 uses eight fields of 16-bit binary code separated by colons. The IP address you’ll see would look something like 2001:0db8:85a3:0000:0000:8a2e:0370:7334. But the binary code underpinning this IP address would resemble something like this.

It’s quite common to see a double colon in the numerical representation of an IPv6 address. Don’t worry, it’s not a typo; it just means that every binary value within that set of 16 is a zero. Here’s how that works.

So, when you have that much binary to play with, there are 340 undecillion possible IP addresses that can be assigned. If you’re not familiar with undecillions, here’s an analogy to explain just how mind-blowingly large that number is. Imagine that every atom on the surface of planet Earth had its very own IPv6 address. You’d still have about 99% of your possible IPv6 addresses left untouched.

Common Migration Challenges

Common migration challenges include:

• Hardware compatibility: Your network equipment, including switches, servers, and routers, may or may not be compatible with IPv6 addresses. You might need to evaluate every piece of equipment to determine whether it meets requirements, and if not, decide whether it needs upgrading or replacing.

• Having to re-IP your network: This is a fiendishly complicated procedure involving changing IP address schemes, and it requires the set-up of a testing lab. 

• Unknown variables for future networks: Future-proofing your IPv6 network will require some thought. Care needs to be taken when determining what remote systems will need to access and work with equipment on your network, both now and in the future.

As you can see, there are many labor-intensive processes involved in an IPv6 migration, so you’ll need to weigh the cost of this transition against the potential costs of staying with IPv4 before deciding when to make the break. 

However, at some point, you’ll most certainly need to migrate to IPv6.

Static vs. Dynamic IP Addresses?

IP addresses are assigned in one of two different ways, and it’s this method of assignment that defines the IP address as static or dynamic. A static IP address is manually set up on a device, essentially reserving that specific address for a fixed location — typically a server. In contrast, dynamic IP addresses are automatically assigned by the Dynamic Host Configuration Protocol (DHCP), which chooses an available address from a predefined pool or “block” — a range of pre-assigned IP addresses. 

For simplicity, static IPs are sometimes described as public IPs, which means the whole internet can identify the IP as a unique and specific endpoint. Dynamic IPs are associated with private IPs, which are disguised from the wider Internet via the DHCP process previously described.

We should point out that DHCP can also assign public IP addresses; that’s why static/dynamic doesn’t always correlate with public/private. But it’s a useful rule of thumb because the public and private terminology gives us a clearer understanding of the reasons to choose one type of IP over the other.

Why Use Public IP Addresses Instead of Private IPs? 

Public IP addresses are necessary to connect to the Internet. It’s easier to understand if you think in terms of the Internet you get at home. Your router has a public IP. It’s probably the only thing in your home that does. 

Everything else in your home that connects to the router is assigned a private IP address. This includes devices like your computer, your Smart TV (and your fridge and your vacuum, if you’re into that whole IoT vibe).

So, why would you need multiple public IP addresses? It’s easy to find enterprise use cases. Your website requires a public IP. Anyone browsing the web needs to find that unique, specific endpoint associated with your business domain. Email domains also require a public IP.

Virtual Private Network (VPN) Tunnels require a public IP address for the VPN Concentrator (usually the firewall), allowing remote workers to connect to the secure network behind the firewall.

In a business context, you can see how use cases like these would require the use of several, sometimes many, public and static IP addresses.

Who Allocates the IP Addresses?

Both IPv4 and IPv6 addresses are allocated by the same group of governing bodies, overseen by the Internet Assigned Numbers Authority (IANA). Here’s a map to show you which regional body assigns the IP addresses in your neck of the woods.

How Much Do Public IPv4 IP Addresses Cost?

As mentioned earlier, IPv4 public IP Addresses are in high demand. Up until 2011, you could still get them for free from IANA. The regional internet registry supply dried up shortly afterward. 

Now, anyone wanting a “block” of public IP space (256 individual IPs) is left with two options — rent or buy.

Public IPv4 IP address purchase costs are hefty. Gone are the days when your Regional Internet Registry (RIR) would sell public IPs directly. An ecosystem of brokers has sprung up to manage the trade and exchange of this prized resource.

A block of 256 IPs that you could cherish forever went for a measly $2,560 back in 2014. Now, the same block is going to set you back $13,312, minimum.

Public IPv4 IP rental costs can be a more feasible expense. Back in 2014, when they first started charging, renting by the block would cost you $0.06 per IP. That’s $15.36 a month.

Anyone looking to rent IPs now is obviously paying a much higher premium — at $0.55 per IP, that block is going to set you back $140.60. 

Can I Rent a Smaller Block of Public IPs? 

You can indeed rent a smaller block of public IPs, but there’s no hard and fast rule about how much it’ll cost you. They’re typically available as an “add-on” for an existing internet service.

The fee is wholly at the discretion of your ISP, determined by local demand and other market factors. You may pay nothing, or in some cases, you might find yourself hit by costs of up to $25 a month for every additional IP address. 

How Much Do Public IPv6 IP Addresses Cost? 

As befits the near-infinite capacity of the IPv6 space, additional IPv6 IP addresses are much easier to come by than IPv4 IP addresses.

There’s little appetite for a rental market. Most ISPs are happy to provide you with as many IPv6 addresses as you want at no additional cost. 

Should you wish to stake your claim and purchase a block of IPv6 IP addresses, you can still deal directly with your RIR. If you’re buying the standard block of 256, they’ll set you back a measly dollar apiece.

Are We Running Out of Static IPv4 Addresses? 

The truth is that we’re not running out of static IPv4 addresses — we’ve already run out.

4.3 billion IPv4 addresses kept us going for a while there, but as it turns out, the number of possible combinations of a 32-digit code doesn’t provide anywhere near enough individual IP addresses for everyone to get online.

IPv4 address exhaustion is a global problem. IP addresses are managed and distributed by RIRs — non-profit organizations that manage and distribute IP address space and autonomous system (AS) numbers, which are networked groups of IP addresses.

The Challenges of Migration From IPv4 to IPv6 

As we briefly outlined, the time and processes involved in a static IP migration from IPv4 to IPv6 are considerable. It’s a long and expensive transition, and right now, the cost of static IPv4 addresses may not be steep enough to warrant the move.

Another issue to consider is how IPv6 uses different types of addresses to provide a wider range of interface delivery options. IPv6 addresses can be unicast, multicast, or anycast — all giving rise to additional headaches when you’re trying to futureproof your new network, as these configurations are tricky to map to your existing IPv4 topologies.

All the known and unknown variables we’ve listed so far are (to an extent) under your control, too. There are further complications that you might not be able to control on the wider Internet. 

Unless your local hosts, network partners, and ISP are all fully committed to IPv6 throughout their operations, there’s the potential risk that some elements of your network or resource access could disappear overnight if you migrate too soon.

Additionally, if you’re running a secure end-to-end solution, there are so many moving parts that you may end up playing “whack-a-mole,” resolving one problem only for another to pop up, while trying to ensure compliance throughout your entire network.

With all these daunting dilemmas stacked up against you, you might be forgiven for burying your head in the sands of IPv4 and waiting for the march of progress to open a less challenging route to the inevitable destination of IPv6. 

However, there’s a transition strategy that can give you the best of both protocols.

Dual Stacking IP Strategy

The Dual Stacking IP strategy takes its lead from the approach phone companies used to transition from 7-digit to 10-digit local dialing. They built out their systems to accommodate the use of both 7 and 10-digit numbers, and then when everyone was accustomed to using 10 digits, they eventually phased out the 7-digit numbers. 

Dual Stacking allows companies to run and access IPv4 and IPv6 content simultaneously. That way, the consistency and reliability of IPv4 is combined with the greater potential technical possibilities of an IPv6 network, and the company can spread the costs and the hassle of the eventual migration over a much longer, less disruptive timeframe.

Any operational vulnerabilities, future-proofing opportunities, or incompatible equipment or systems can be identified at a leisurely pace. 

Best Practices To Prepare for a Shift From IPv4 to IPv6

For prudent businesses and those with pressing IP address demands, the time to start planning your IPv4 to IPv6 shift is now. To prepare for this, there are a few best practices that you should consider implementing:

Network IT Staff Education

With the right staff and up-to-date education on the IP address crisis, most potential pitfalls during an IPv6 transition can be avoided. Yes, there are other concerns, but this is generally the largest, and it’s completely within your business’s control. There is no shortage of training available. You can find quite a few training programs just by doing a simple internet search. The RIRs themselves have some guidance on IPv6 training to offer:

• AFRNIC;

• APNIC;

• ARIN;

• LACNIC;

• RIPE NCC.

If these aren’t the right fit for you, plenty of independent companies offer similar training. 

Security Concerns

With any technological shift comes bad actors wanting to exploit it. IPv6 is no different. Despite its inherent embedded security, any large-scale network overhaul can expose new security concerns. Ensure your network is properly secured from malicious attacks. 

Network Inventory and Hardware

While we established this as a concern earlier, network inventory and hardware are still often overlooked when planning an IPv6 migration. All you need to do is scan your Local Area Network (LAN) for all devices. From there, ensure each device is IPv6 compatible. Create a list of incompatible devices and calculate the cost to upgrade or replace them as part of the project costs. As we noted earlier, most modern networking devices are fully able to handle IPv6, so this may not be as much of a cost concern as it initially seems. 

IP Address Planning

Smart companies run on smart planning. IP address control and monitoring is no different. You likely already have an effective IPv4 address scheme to make things easier to locate, isolate, and troubleshoot. IPv6 needs the same. 

Domain Name System Servers

Domain Name System (DNS) servers make it easier for users to navigate the Internet — primarily by allowing the user to navigate to a domain name and automatically resolve it to an IP address. Ensure that you have a good handle on your DNS servers, that they’re IPv6 compatible, and that they have the appropriate IPv6 address preplanned.

Deciding on a Transition Strategy

With these best practices in hand, it’s time to choose the right transition strategy. Dual stack has proven successful and appears to have the highest adoption rate. In this approach, both IPv4 and IPv6 run simultaneously on the network. However, there are also other options:

• IPv6 tunneling (encapsulated IPv6 inside IPv4 packets): Lightyear has seen this used when mergers and acquisitions unite companies with a mix of IPv4 and IPv6 addresses. IPv6 tunneling allows the IPv6 networks to remain isolated and route over IPv4 backbone links.

• NAT64/DNS64 (to translate between IPv4 and IPv6): This is a newer but fairly straightforward transition strategy. NAT64 translates IPv6 addresses into IPv4 and vice versa. This allows IPv6-only devices to send packets to IPv4-only servers and receive responses. NAT64 is typically paired with DNS64, which synthesizes IPv6 addresses from IPv4 DNS records. When an IPv6-only device queries a domain, DNS64 provides a synthesized IPv6 address that points to the IPv4 server.

No matter which of the three transition strategies you choose, remember that planning and preparation will remove most of the headaches.

Initial Steps for Transitioning to IPv6

With your transition strategy settled and your best practices met, now comes the easy part — requesting your IPv6 space.

The overabundance of IPv6 space makes it extremely convenient to request and obtain IPv6 addresses. There are two typical tracks.

Request IPv6 Addresses From Your Local Regional Internet Registry 

Determine which RIR applies to your location that needs public IPv6 space. Then:

• Log on or create an account with the appropriate RIR.

• Follow the RIR steps to apply for IPv6 space.

• After reviewing your application, the RIR will assign and register your block.

There are fees associated with this process that vary per RIR. These fees include:

• Annual membership;

• Initial allocation;

• Renewal costs.

If your business is looking for long-term control and retention of the IPv6 space, you will likely want to take the following route.

Request IPv6 Addresses From Your Internet Service Provider

This step lets you bypass RIR registration and fees and request the IP addresses you need directly from the ISP that supplies your site. 

If the IP address space you need doesn’t serve a critical business purpose and if it’s fine to transition to new IPs, should you ever decide to change your service provider, this may be your best option. ISPs typically charge a very nominal fee for IPv6, and often, they don’t charge anything at all. This does vary depending on your ISP, so you will need to ask and confirm.

Final Steps for IPv4 to IPv6 Transition

Now, you have successfully:

• Trained your information technology (IT) team;

• Prepared your business for the IP transition;

• Picked an appropriate migration strategy;

• Obtained your IPv6 addresses.

We also recommend using a sandbox or lab environment to test the migration strategy before you jump in and move your company in real time. Several of the RIR training tools we linked above have test environments available to help you. Private tools are also available.

Test environments are a key way to avoid business interruption during a migration. Once you’re happy with how the migration pans out in the test environment, you’ll be ready for a smooth, simple shift from IPv4 to IPv6.

Not Ready for IPv6?

For large enterprises, the additional cost of purchasing static IPv4 is outweighed by the logistical costs and disruption of migrating their whole organization to IPv6. This may require major overhauls of hardware and software to ensure compatibility, as well as integrating entirely new IP address management (IPAM) systems. 

Your IT administrators are likely to put off this transition as long as possible, with good reason. After all, it’s a large project without any real return on investment in the short-to-medium term.

Not that obtaining new IPv4 is a walk in the park, of course. The RIRs hold back a precious few in reserve; however, if you want to access these IPs, you’ll need to fill out a detailed justification form. Several online brokers can also help you access these remaining IPv4s, for the right price.

Several canny carriers have kept a few IPv4 addresses in reserve. They’ll also need you to fill out an extensive justification form before charging you the current going rate, or above, for a block of static IPv4 addresses.

Regardless, if you’d like to discuss your static IP strategy, IPv4 transition strategy, or just purchase static IPs alongside your circuit needs, try out Lightyear today. We can help you with all of the above.