When IP address rates are on the rise, the reason why you may wish to lease it is that it can provide prolonged predictable revenue. If you lease IPv4 space, it would open the door for selling a block of these addresses for a relatively higher rate than the present market price. As its lessor, the move would allow you to retain the ownership of the IPv4 address block with future requirements in mind.
Read on to know why you might wish to lease IP addresses and the risks involved in this move. For your information, the term ‘lessor’ refers to the one who rents out that IP address block and the lessee is the party who gets it.
The Pros Of Leasing The Addresses
For several entities, there are numerous benefits to leasing these resources, including the following.
- Using operating expenses over capital expenditures is occasionally preferable.
- Leasing enables an organization to utilize its capital for priority investments, which can offset the lease cost when it has a return on the said capital.
- It lets an entity align the costs more proximate to the revenues of it.
- When in the renumbering process, having an unutilized block of the addresses to assign fresh numbers to is occasionally useful. Thus, it becomes possible to reclaim and reorganize the previous space before it is reutilized.
- When moving to IPv6, the ideal way to get temporary internet protocol addresses is leasing. In this situation, it is better than spending more capital just to obtain unwanted IPv4 addresses.
Leasing may be an excellent option, but it comes with certain risks even today. Shared below are the risks that you have to keep in mind when renting out the address space.
- The lessor requiring the resources before the lease term completes
- The lessee requiring these even after the agreed-on term
- A careless or malicious lessee permitting the use of the addresses as part of spamming or some other malicious activity. This would cause websites to blacklist traffic that comes from the concerned addresses. This blacklisting occurrence would cause the addresses to be not usable after the agreement up to the time every listing is cleaned up.
The leasing cost can usually be greater as compared to the cost involved in purchasing addresses for a long period. The breakeven point hinges on the lease terms, and it is a factor to think about when renting out the addresses.