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Steven J. Vaughan-Nichols

Want to buy an Internet IPv4 address? Cheap?

By | March 24, 2011, 3:53pm PDT

Summary: Companies are beginning to sell IPv4 addresses as the IPv4 address pool finishes drying up.

I predicted that IPv4 (Internet Protocol version 4) hungry companies would start shopping for IPv4 addresses and a market would be created. I was right. As part of Nortel’s bankruptcy settlement, Microsoft has offered to buy Nortel 666,624 IPv4 addresses for $7.5 million (PDF Link).

Making this call didn’t require me to be a Nostradamus. It’s basic free-market economics. Internet IPv4 addresses are now in short supply and with no more ever coming down the pike and the demand for Internet addresses increasing it was only a matter of time and dollars. Of course, everyone should be switching over to IPv6, but given a choice between buying their way–for a while anyway–out of a problem or investing in a major network infrastructure, Microsoft, at least, is going for the buy option. It won’t be the only one.

That’s really rather odd since Microsoft in Windows 7 and Server 2008 R2 actually does an excellent job of not just supporting IPv6, but building on top of it. For example, if you use both on your network, it’s really easy to set up Web-address based network Quality of Service (QoS) management.

Be that as it may, Microsoft is paying $11.25 per IPv4 address. The deal was put together for Nortel by Addrex. This rather mysterious company is one of the first, but most certainly not the last, IPv4 address brokers.

The Regional Internet Registries (RIRs) may be getting into the act as well. In a Government Computer News interview, John Curran, president and CEO of the American Registry for Internet Numbers, (ARIN) said, “We don’t expect that to heat up for another six months or so, because we still have IPv4 address space,” but come that day, ARIN will be setting up a “legitimate market” for addresses.

So what kind of market do we have now? Black? Gray? Polka dot!? Good question. Buyers, sellers and the RIRs are still working out what will be good answers.

IP addresses are virtual property, but ARIN has its own set of rules on how they can be transferred. A buyer has to show that they need the addresses and can only sell a year’s supply at a time. As for the price, Curran said. “ARIN is not a party to that. That’s between you and the recipient.” Of course ARIN isn’t the only Internet RIR and they may set other stricter or looser rules and conditions.

ARIN or no ARIN I think we’re in for a brief–no more than two years-of wild and woolly IPv4 address trading. After that, we’ll be well on our way to the IPv6-based Internet and we won’t have to worry about running out of addresses until the Federation of Planets’ interstellar Internet has been set up.

See Also:

Don’t Panic! It’s only the Internet running out of Addresses

Real Help for your Network’s IPv6 Transition

Use IPv6 in Windows 7 Today

Easy Network Quality of Service Management for Windows Users

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Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system

Disclosure

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols is a freelance writer. He does not own stocks or other investments in any technology company.

Biography

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system; 300bps was a fast Internet connection; WordStar was the state of the art word processor; and we liked it.

His work has been published in everything from highly technical publications (IEEE Computer, ACM NetWorker, Byte) to business publications (eWEEK, InformationWeek, ZDNet) to popular technology (Computer Shopper, PC Magazine, PC World) to the mainstream press (Washington Post, San Francisco Chronicle, BusinessWeek).

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RE: Want to buy an Internet IPv4 address? Cheap?
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
0 Votes
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Steven - To be clear, ARIN will recognize any transfer of address space that meets the policies developed by the community. Parties do not have to make use of ARIN's listing services; those are entirely a convenience to allow others (*not* ARIN) to match those needing and those with available space.

/John
John Curran
President and CEO
ARIN
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Contributr
@jcurranarin Thanks for the clarification John.

Steven
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@jcurranarin This will require the purchaser to qualify under the current requirements in order for the transfer to complete, correct? If they do not fully qualify for the entire block, can ARIN allow a partial transfer? What happens if they fail to meet the requirements? Does the space remain in the previous owners name?
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I think a company going bankrupt should have to just return the IP space to ARIN so they can then allocate the space to people that need it. There is no reason a single company like Microsoft needs 600,000+ IP addresses (in addition to what they already have).
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I agree
pgit 25th Mar 2011
@tlj@... This smacks of "squatting" in a way. It'll probably only get worse. There should be no profit motive in the basic addressing system.
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@tlj@...

I worked for Amazon recently within their operations teams. Given their cloud computing efforts (as well as Microsoft's and Google's), you're dead wrong.

Regards,
-M
0 Votes
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@betelgeuse68
Be that as it may, Microsoft is paying $11.25 per IPv4 address. The deal was put together for Nortel by Addrex. This rather mysterious company is one of the first, but most certainly not the last, IPv4 address brokers.
San Francisco dentist
San francisco wedding photographer
0 Votes
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@tlj@... If they are doing cloud computing then yea they will.
I appreciate your speculating as it attracts people's attention and make this topic discussable.
Anna
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Cloud services?
jessepollard 25th Mar 2011
I could see them wanting several thousand for their cloud services, but 600,000 might be enough to spread their cloud over the world...
0 Votes
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Another criminal enterprise.
0 Votes
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If I recall NT had both a Class A and B address space assigned to them. I wonder what a lowly Class C would go for?
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Many Addresses to be freed
Jimster480 25th Mar 2011
If every cell phone didn't have its own IP address then there would be so many free IPv4 addresses that there would be no problems. Cell networks should make use of Private IP's, then there would be tons of IP's available. Same if many home ISP's did the same. Although on Home ISP's I could see there being problems with any large regulated sites like Wikipedia because there wouldnt be that many public IP addresses out there for a whole ISP so it would be too easy to block huge areas/blocks etc. But thats not as big of an issue on cell phones since they dont typically use deskop services/sites that impose regulations like that. Allowing them to use private IP's with only a small pool of public IP's for the outgoing routers.
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Verizon switched to private IP addresses for new customers a while ago.
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RE: Want to buy an Internet IPv4 address? Cheap?
mkyoung Updated - 4th Apr 2011
@General Chat

Are you sure about that? My parents have Verizon and I remotely connect to their network often (machine.domain).

They have had their service with Verizon for 3 months tops.
I notice that a lot of people should stay on topic to try and add value to the original blog post.
Nick Evans
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Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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