The Importance of IPv4 Addresses for CDN Providers 

6 min read
8 September 2022
Vincentas Grinius

Why are content delivery network providers struggling to obtain IPv4 addresses? Can IP leasing offer a solution? Discover answers in this post.

Two hoes connected with a line and geolocation markers.

Do you seek a flawless browsing, video streaming and online gaming experience? Thanks to Content Delivery Network (CDN) providers, you can efficiently consume all digital content. CDNs ensure speedy content delivery with a network of servers closer to end-users. However, to deliver high-quality services, these businesses need more and more Internet Protocol addresses that are a scarce commodity today. Fortunately, IP leasing for CDN companies can solve the problem, but what benefits can IP leasing unlock for this industry? 

Perhaps your business is already considering how to obtain the desired IP block for network operations? We review IP leasing as a solution and its advantages in this article. But first, let’s take a step back and discuss what services CDN companies offer and why they need IP addresses for their operations in the first place. 

Key Takeaways

  • CDN services are crucial for successful content delivery throughout geographical regions to ensure the best possible user experience. 
  • The exhaustion of IPv4 addresses hinders the development of CDN providers’ networks, which forces them to look for new growth solutions. 
  • IP leasing offers a quick and efficient way for CDN providers to acquire IP assets from various geolocations. 

What are CDN services?

CDN services are based on a network of distributed nodes, referred to as edge servers. A CDN may have many servers in different geographic locations that improve the delivery of content, online gaming or video streaming experiences for end-users. Let’s go over how we actually access internet content. 

Usually, when you browse the internet, the Domain Name System (DNS) helps you access different digital content by translating domain names into IP addresses. Let’s say you want to request a webpage named with an IP address When you type the domain name into your browser, it makes a DNS request to the DNS server and then shows you the webpage.

This happens instantly, seemingly without your knowledge. However, did you know that the physical location of DNS servers might slow down browsing? For example, if you send a request from your computer in the USA to another computer locally, the request goes faster than the one sent to Australia. Luckily, CDN providers shorten the distance between your computer and content from different parts of the world. 

In simple terms, when you request a webpage, the DNS checks the geographically closest edge servers. Then, these servers check if they have the requested data in their cache and quickly return the result to you. 

To ensure the stability and efficiency of their services, CDN providers need to establish many edge servers in different locations. However, the larger number of edge servers may require more IPv4 – Internet Protocol version 4 – addresses to scale the network successfully. 

Origin server in the center of a map connected to multiple edge servers.
Origin server and the connected edge servers

Why is obtaining IPv4 addresses hard?

Businesses may struggle to get the resources they need for the successful development of their networks due to IPv4 exhaustion. Why are we facing this problem? Due to the exponential growth of the Internet of Things (IoT) devices and networks, Regional Internet Registries (RIR) can no longer distribute IPv4 addresses to every business that requests them. 

One of the acquisition options is to enter the transfer market and request an IP transfer from the relevant RIR. However, IP transfers are complicated due to strict requirements imposed by the internet registries and may take a long time. Therefore, CDN providers may not get the desired number of IP resources quickly to establish servers worldwide.  

Another option is to buy IP addresses with the help of an IPv4 broker. However, IPs are getting increasingly expensive, and not all companies can afford them. While large CDN companies may have a lot of money to buy the IP blocks they need, smaller CDN providers may not have the budget necessary to purchase the resources. 

What else is there for CDNs? They can adopt IPv6 – the most recent version of the Internet Protocol. However, IPv6 still accounts for a relatively small percentage of internet traffic – 37% (September 5, 2022 data). Why is that? Due to various limitations, like huge implementation costs and hardware incompatibility, companies are hesitant to fully transition to the latest IP version. So, CDNs might hesitate to use only IPv6 or implement the dual-stack network

Fortunately, there’s one more solution that can help CDN companies scale their businesses quickly and in a cost-efficient way – IP leasing. 

Is IP leasing a good option?

IPv4 leasing can be a suitable solution for companies in the CDN industry because it is a more sustainable and cost-efficient way to access this valuable resource. How exactly can these companies benefit from IP leasing? There are 7 top benefits of IP leasing, but let’s discuss three specific ones: 

  • Wide choice of geolocations 
  • Cost-efficient growth 
  • Simplified IP address management 
Three benefits of IP leasing for content delivery network providers.
IP leasing benefits for CDN

Perhaps you are wondering whether your new business can take advantage of IP leasing? The good news is that all CDN companies, no matter their size, can enjoy the benefits of IP leasing and unlock new opportunities. 

Wide choice of geolocations

CDN service providers constantly expand their networks by establishing new edge servers in different parts of the world. The wide network of servers helps CNDs to offer high-quality services to their clients. But what if your business needs more IP addresses and you cannot get them from your region-specific RIR? 

Luckily, you can lease the desired IP block at IPXO – the first fully automated IP lease and monetization marketplace. We offer IPv4 addresses from all five RIRs, so you can choose the resources that fit your needs best. Additionally, you can easily filter out all subnets according to their size and pricing to find the addresses according to the more specific requirements. 

Ultimately, IP leasing can help you quickly acquire IP resources so that you can establish as many edge servers as you need to ensure the highest quality services for your clients. 

Cost-efficient growth

Do you know that if you buy IP blocks today, you might need to pay up to $60 per a single IP address? Imagine spending $15,360 on a small /24 block that carries only 256 addresses. Perhaps you need more IPs, but you don’t have the luxury of spending thousands of dollars on them? Fortunately, you can lease the required number of addresses at IPXO at a significantly lower cost

For example, the same /24 block can cost you only $128 per month at the average price of $0.50 per IP (September 5, 2022 data). Based on this price, even if you leased the subnet for a whole year, you would spend just $1,536. 

Ultimately, with IP leasing, you can grow your business networks cost-effectively and dedicate your savings to other vital investments

Simplified IP address management

The IPXO platform helps lease and manage your IP addresses independently. How? After you create your account, you can start leasing immediately – the process is automated with a few steps to go through. Then, you can bring your leased IPs to any infrastructure and use them seamlessly. 

Check out this video to learn how easy it is to lease IPs via the IPXO Marketplace.

Moreover, IPXO manages all leased and monetized IP addresses using the IP address management (IPAM) system to ensure that clients can use their resources safely and efficiently. To ensure the reputation of IP addresses, IPXO also implements thorough subnet validation checks for IP blocks placed for lease. 

Furthermore, the automated platform has different features that are constantly updated to ensure a flawless user experience. For example, you can automatically generate your Letter of Authorization (LOA), which allows you to use your resources immediately, if need be. 

Do you need to ensure smooth traffic flow to your infrastructure? No problem: We can issue a Route Origin Authorization (ROA) document that confirms your route origin. ROAs ensure that your published routes are always valid so that internet service providers (ISP) cannot stop your traffic. 

Are you interested in learning more about the IPXO platform and how to start leasing? You can find more information in our comprehensive IPXO platform walkthrough

Start leasing and watch your business flourish

Undoubtedly, the CDN industry is thriving, and businesses need to adapt to the growing demand for content delivery at high and reliable speeds. However, the quick expansion of CDN services requires more IPv4 addresses – a scarce commodity. What if your CDN business needs IP resources and you can’t afford to buy them? IP leasing is the answer

The IPXO Marketplace empowers your business to grow and achieve its full potential. By joining our Marketplace and leasing IPs, you can develop your server network across the world and help your clients get the best possible services. Also, you can lease the internet numbers you need at a reasonable price and save more money for other business ventures. 

The fully automated and user-friendly platform facilitates the leasing process so that you can start using your resources as soon as possible. Of course, our developers’ team is working every day to improve the user experience and optimize platform functionality even further. 

Ready to give leasing a try? Go ahead and register to start your journey. If you still have questions about leasing IP addresses, book a demo and our experts will get in touch to demonstrate our platform in action! 

About the author

Vincentas Grinius


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.
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