February 7, 2019

Buying vs. Leasing an IP Address

The IP address you connect from serves as a means of identifying your computer or device on a network. This is analogous to a DNA sample or fingerprint, in which it allows tracking down the origin of data to the specific computer. The usefulness of this is mostly seen in cases where you receive a request for information from an official source.

These days, a lot of businesses prefer having their own IP address to enable confidentiality of data traffic. A privately held IP address lets you mask your location so that other websites cannot track you down. If a unique address is what you need, then there are options to either buy or lease. Each has its pros and cons, including the following.

Advantages of Buying

When you buy IPv4 addresses, it obviously costs more than it would if you leased them instead. However, the former brings more security and stability, because you would have more leverage to decide your own terms of use. In contrast, a leasing agreement forces terms on you, and you would be bound to follow these as a lessee. That means every time you wanted to reroute traffic, it would require getting prior approval from someone. Buying an IP address takes that problem out of the picture, which is why many consider it the better choice.

Advantages of Leasing

When you lease IP addresses for your business instead of buying them, the main benefit you receive is the chance to enjoy some of the benefits of a private address, without having to pay a hefty sum, or to enter into a comparable financial commitment. If at any time you decided to end the lease, you could do it without high losses; even the cancellation penalty would be typically small. After that, you would not have to look for buyers to take the address of your hands (the way you would after buying).

There are various other factors, which need to be assessed before entering into an agreement to lease or buy an IP address for use. Is it your need to get a private network specifically for a growing business? Or do you simply wish to step up security and privacy when you browse the web? How much are you willing to spend, and over how long a period? And how long will you take to decide whether a private IP address is in fact the thing for you? These are the main questions you need to be answered when it comes to choosing between buying and leasing a private IP address.