14 July 2022 | 5 min read | Vincentas Grinius
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Benefits of IP Leasing for the Cybersecurity Industry 

Cybersecurity companies rely on IPv4 resources. Why should they consider leasing IPs and why is leasing a highly beneficial solution? Find your answers in this post.

A laptop with a lock on the screen indicating a cybersecurity company.

Cybersecurity companies perform a vital task in detecting and reducing the risk of cyberattacks to protect internet-connected systems. However, these companies may need new resources – Internet Protocol addresses, also known as IP addresses – to develop their infrastructure and prevent increasingly sophisticated malicious acts. Unfortunately, the supply of IPv4 addresses – the backbone of today’s internet infrastructure – is scarce, and buying IPv4 is expensive. Therefore, IP leasing for cybersecurity companies may be the best option available. 

Why should cybersecurity companies consider IP leasing and how can they take advantage of it? Can IP leasing help reuse dormant resources? We answer these questions in the article, so continue reading to learn more about IP leasing for cybersecurity companies. 

What leads cybersecurity companies to IP leasing?  

The global cybersecurity market was valued at $139.77 billion in 2021 and is projected to grow to $376.32 billion by 2029. Why? Companies increasingly employ artificial intelligence (AI) and cloud security to develop new solutions against the increasing levels of cybercrime. Cybersecurity companies vigorously invest in their infrastructure and continue to expand their networks. 

However, the continuous expansion pushes companies to acquire new IP addresses, which are now more difficult than ever before to come by due to the global exhaustion of IPv4 resources. To put it simply, the limited supply of this valuable resource hinders the great demand by the companies within the cybersecurity sector. 

A person sitting in front of a computer solving cybersecurity problems.
Cybersecurity companies are powered by IP addresses

Temporary solutions cannot offer significant relief

Fortunately, we have managed to find ways to use IPv4 addresses more effectively. For example, such workarounds as Network Address Translation (NAT) allows multiple local network users to access the internet using only one public address.  

However, NAT is a short-term solution that only prolongs the usability of IPv4 addresses. This technology has its limitations, such as security and compatibility issues across different software. Therefore, we should rely on one-time solutions only while adopting new approaches to IP addressing like the more advanced version of the Internet Protocol – IPv6. 

Unfortunately, huge implementation costs and hardware limitations still restrict global IPv6 adoption; therefore, it is difficult to predict whether it will be fully implemented any time soon. So, what other options do cybersecurity companies have if they need IP addresses to scale their operations? 

IP leasing is a solution that has been gaining popularity in recent years. Companies of any size can enter the IP leasing market to boost their businesses by leasing IPv4 addresses. On the flip side, companies that have unused resources can earn money and, at the same time, contribute to the market by allowing other companies to lease their IPs.

Two people discussing growth in front of a whiteboard.
IP leasing can help companies grow fast

IP leasing allows scaling business in no time 

Did you know that IP leasing is a more time-efficient solution than IP buying? You can lease IPv4 addresses from all Regional Internet Registries (RIRs) via the IPXO Marketplace in just a few days. In contrast, if you were to buy IP addresses, the purchase process could take weeks. 

Also, it is easy to start leasing immediately after registering at the IPXO Portal. You can choose from a variety of subnets, complete the payment and start using your resources on any infrastructure. If you need more details on the registration and leasing process, we suggest watching a video tutorial on how to join IPXO and start leasing. 

How can cybersecurity companies benefit from IP leasing and monetization? 

In addition to faster acquisition of the needed IPv4 addresses, IP leasing offers significant financial benefits to cybersecurity companies, including: 

  • Cost-efficiency in business development 
  • New stream of income 

Companies small and large can join the IP lease market. Including, those that lack new resources for quicker and cheaper business growth and those with unused IPs. 

Scaling business by leasing IPs is cheaper 

Can you imagine that eight years ago you could buy one IP for as little as $6? If you were to buy an IP address right now, you could pay around $50 or even more. Prices are likely to continue rising in the years ahead. Therefore, leasing might be a cost-efficient option in the long run. How? You don’t need to invest a lot of money upfront if you need a lot of addresses for your business. 

For example, in mid-July 2022, you could lease an IPv4 address via the IPXO Marketplace for just $0.47 per month on average. A lower leasing price allows saving money. Money that can be used to invest in the company’s infrastructure or other essential developments. 

Statistics bars representing the price growth of IPv4 addresses.
IPv4 address price is on a rise

Also, leasing IPs does not require a long-term commitment. You can lease addresses for one year and then stop leasing if you no longer need the resources. The short-term lease may be useful if you need only a small amount of IPv4 addresses for a short period. 

IP monetization can generate additional income 

What benefits can IP leasing bring for IP lessors – companies that want to make use of IPv4 addresses they do not use themselves? Instead of selling IPs and receiving a one-time payment, IP holders can monetize their resources via the IPXO Marketplace to secure recurring income. 

Cybersecurity companies with a surplus of IPv4 resources can use the additional revenue earned via IP monetization for other investments. For example, they can dedicate the money for a costly transition to IPv6 – an infrastructure that is supported by 340 trillion trillion trillion IPv6 addresses. 

Moreover, if companies need to manage large amounts of IP addresses they do not use, network administrators have to waste their valuable time administrating these resources. If companies choose to monetize their IPs via IPXO, we can take over the management of the resources efficiently thanks to our IP address management (IPAM) system. 

Ultimately, IP holders that monetize their resources contribute to a more sustainable internet and allow other companies to grow their businesses more efficiently. 

If you are still not sure whether you should lease or sell IPv4 addresses, you can use the IPXO Leasing vs. Selling Calculator to compare revenue earned from leasing and selling. 

Leasing vs. selling calculator compares revenue from leasing and selling.
Leasing vs. Selling Calculator

If you decide to monetize your assets via the IPXO Marketplace, you can register and start receiving your earnings once your subnets are leased. If you need more details on how to register and upload your subnet to the Marketplace, watch a video tutorial on how to join IPXO and start monetizing. 

A comprehensive solution for all 

In the advent of IPv4 exhaustion, companies may struggle to acquire as many IP addresses as they need to grow their business. What should cybersecurity companies do if they need new IPv4 resources to scale their operations? 

Luckily, buying IPs is no longer the only option. The new, innovative and open IP lease market invites companies small and large to join and start sharing unused resources. 

All cybersecurity companies can benefit from IP leasing, no matter their size. Small and medium-sized companies that lack assets for their activities can lease IPs without investing a lot of money upfront. Simultaneously, they can use their savings for other ventures. Also, IP leasing for cybersecurity companies may help acquire IPv4s fast and without a long-term commitment. Companies can even choose short-term leasing depending on their needs. 


About the author

Vincentas Grinius

CEO

Vincentas is a business-driven geek with over 15+ years of network, infrastructure and internet policy experience. As a CEO at IPXO, the Internet Protocol platform, Vincentas focuses on helping address complex network management issues and the global IPv4 shortage.