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Home » IPv4 lease VS IPv4 purchase: which is better for enterprises?
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IT Infrastructure

IPv4 lease VS IPv4 purchase: which is better for enterprises?

By Debbie WangJanuary 30, 2026No Comments7 Mins Read
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  • Enterprises increasingly treat IPv4 addresses as operational assets, choosing between leasing flexibility and purchase-based control.
  • The decision affects cost predictability, governance risk, and long-term digital capital strategy.

Leasing or Buying IPv4 Addresses Depends on Enterprise Strategy, Cost Horizon, and Network Scale

The decision to lease or purchase IPv4 addresses is no longer a mere technical consideration—it has evolved into a strategic financial and operational choice. As of early 2026, the global pool of unallocated IPv4 addresses remains effectively exhausted. The Internet Assigned Numbers Authority (IANA) depleted its central IPv4 registry in 2011, and all five Regional Internet Registries (RIRs)—including ARIN (North America), RIPE NCC (Europe), and APNIC (Asia-Pacific)—have since implemented strict allocation policies or exhausted their own reserves entirely (IANA, 2011; RIPE NCC, 2025 Annual Report).

In this constrained environment, enterprises must acquire IPv4 resources through secondary markets. According to the latest data, the average purchase price for IPv4 addresses in Q4 2025 ranged between $35 and $60 per IP, with regional variations—North American blocks commanding premiums due to legacy allocation density and regulatory clarity. Meanwhile, monthly lease rates hover between $0.30 and $2.50 per IP, depending on block size, duration, and geographic region (LARUS Limited, 2025 Pricing Benchmark).

This pricing structure creates a clear inflection point: leasing is economical for short-term needs (under 3 years), while purchasing becomes financially superior over longer horizons. A 2023 study by the University of California, Berkeley’s Networking Research Group modeled total cost of ownership (TCO) for IPv4 acquisition strategies and found that at a median lease rate of $1.20/IP/month, cumulative leasing costs surpass purchase costs after approximately 38 months—a threshold now widely cited by enterprise network architects (Berkeley TCO Model, IEEE Transactions on Network and Service Management, 2023).

Thus, the optimal choice hinges on three enterprise-specific variables: 

  • Strategic time horizon: Is the need temporary (e.g., cloud migration, seasonal traffic) or permanent (core infrastructure)? 
  • Capital allocation policy: Can the enterprise deploy capital upfront, or must it preserve liquidity? 
  • Scale and predictability: Large, stable deployments benefit from ownership; volatile or experimental workloads favor leasing.

Also Read: How can I protect my IP address like a pro?

Leasing Offers Flexibility and Lower Upfront Cost, While Purchasing Secures Long-Term Digital Capital

Leasing IPv4 addresses functions as an operational expense (OpEx), allowing enterprises to scale network capacity without balance sheet impact. This model is particularly attractive to startups, SaaS providers, and firms undergoing digital transformation. For example, a fintech company launching in multiple jurisdictions may lease /24 blocks (256 IPs) per region to meet local compliance and latency requirements without committing to long-term ownership.

However, leasing carries inherent risks. First, contractual dependency: lessees rely on lessor reliability, and disruptions—such as provider insolvency or disputes over RIR transfer eligibility—can jeopardize service continuity. Second, price volatility: while purchase prices have stabilized post-2023, lease rates fluctuate with demand spikes (e.g., during cloud adoption surges). Third, no asset accumulation: leased IPs cannot be subleased, collateralized, or used as strategic reserves.

In contrast, purchasing IPv4 transforms address space into digital capital—a concept increasingly recognized in both academic and financial circles. In a seminal 2024 paper, economists at MIT’s Digital Economy Initiative argued that IPv4 blocks exhibit key characteristics of capital assets: scarcity, durability, transferability, and income-generating potential (via subleasing or infrastructure monetization). They note that “IPv4 addresses have appreciated at a compound annual growth rate (CAGR) of ~9% since 2019, outperforming many traditional fixed-income instruments” (Journal of Digital Assets, Vol. 7, 2024).Critically, IPv4 scarcity is not alleviated by IPv6 adoption. Despite steady IPv6 deployment—now covering ~45% of Google users globally as of January 2026 (Google IPv6 Statistics)—the vast majority of enterprise applications, legacy systems, and B2B integrations still depend on IPv4. A 2025 Gartner report estimates that “through 2030, over 70% of enterprise traffic will remain IPv4-dependent due to embedded infrastructure and partner ecosystem constraints.” Thus, IPv4 retains functional indispensability, reinforcing its value as a strategic asset.

Also Read: What are IP addresses and why they are important?.

Why IPv4 Resource Strategy Matters in 2026

The exhaustion of IPv4 is not a theoretical concern—it is an operational reality shaping global digital infrastructure. With no new IPv4 addresses being issued by RIRs, the only supply comes from organizations divesting unused blocks, often under strict RIR stewardship rules. For example, ARIN requires justification for transfers and prohibits speculative hoarding, while RIPE NCC mandates a 24-month “cooling-off” period before transferred IPs can be re-sold (ARIN Policy Manual v18.3; RIPE NCC Transfer Guidelines, 2025).

This regulatory framework ensures market integrity but also limits liquidity, driving up prices for compliant, clean-title IPv4 blocks. Enterprises that delay strategic decisions risk both cost escalation and deployment bottlenecks. A recent analysis by TeleGeography warns that “enterprises without IPv4 acquisition strategies face 3–6 month delays in launching new services in IPv4-dependent regions like Southeast Asia and Latin America.”

Furthermore, IPv4 addresses are increasingly treated as balance sheet assets. In 2024, Deloitte advised clients to capitalize IPv4 purchases under IFRS and GAAP, citing their long-term utility and market tradability. Similarly, major banks now accept IPv4 blocks as collateral for technology financing—a practice pioneered by Silicon Valley Bank and now adopted by institutions like HSBC and BNP Paribas (Deloitte Tech Asset Advisory, 2024).This institutional recognition cements IPv4’s status as digital capital. As BTW.media’s 2025 analysis aptly states: “In an era of digital sovereignty and infrastructure resilience, owning your IP space is akin to owning your domain name—but with far greater strategic weight.”

Empirical evidence supports this framework. A 2025 survey by Enterprise Strategy Group (ESG) of 300 IT decision-makers found that 68% of enterprises using leasing did so for projects under 24 months, while 82% of those purchasing intended to hold IPs for 7+ years. Notably, 57% of respondents reported adopting a dual-track approach, reflecting growing sophistication in IP portfolio management.One cautionary note: not all IPv4 blocks are equal. Enterprises must conduct due diligence on routing history, reputation (spam/blacklist status), and RIR transfer eligibility. Blocks with poor reputations can incur higher email deliverability costs or security scrutiny. Reputable brokers like LARUS now offer “clean-title” guarantees and escrow services to mitigate these risks.

Case Study: Hybrid Strategy for Scale and Stability

The hybrid model exemplified by the LARUS-documented enterprise is becoming best practice. Consider a multinational e-commerce firm expanding into Brazil and India in 2025. Facing unpredictable user growth and complex local peering requirements, it leased /22 blocks (1,024 IPs) per market for 18 months to test performance and compliance. Simultaneously, it purchased a /19 block (8,192 IPs) for its global CDN and payment gateway—core systems requiring decades-long stability.

This strategy optimized both agility and ownership. Leasing avoided $500K+ in premature CapEx, while purchasing locked in long-term costs at $42/IP—below the projected 2027 average of $52/IP (based on PCH’s 5-year forecast). Moreover, the owned block qualified for inclusion in the firm’s ESG infrastructure resilience disclosures, enhancing investor confidence.Such nuanced approaches reflect a maturing market. As IPv4 transitions from a utility to a strategic asset class, enterprises that treat it as such—balancing liquidity, control, and value—will gain competitive advantage in an increasingly IP-constrained world.

Conclusion

In 2026, the IPv4 lease-versus-purchase debate is settled not by ideology, but by arithmetic, strategy, and risk appetite. Leasing offers tactical flexibility; purchasing delivers strategic sovereignty. The most resilient enterprises do not choose one over the other—they orchestrate both, guided by data, market trends, and long-term digital infrastructure vision. In a world where every IP address is accounted for, foresight is the ultimate scarce resource.

Digital assets enterprise IPv4 leasing IPv4 purchase IPv4 strategy
Debbie Wang

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