Cloud Expense Rises Prompt Exploration of IP Leasing Solutions

In a world where every dollar counts, IP leasing is a smart strategy for businesses aiming to optimize their cloud spending in 2024 and beyond.

LONDON, UNITED KINGDOM, September 23, 2024 /EINPresswire.com/ -- In 2024, businesses utilizing cloud services faced evolving financial considerations, particularly regarding IP address costs. Several major cloud providers adjusted their pricing structures, prompting companies to reassess their cloud expenditures.

As organizations navigate these changes, various cost management strategies have gained attention. Among these, IP leasing has emerged as an option some businesses are exploring for potential savings and increased flexibility in their cloud infrastructure.

UNDERSTANDING THE PRICE SURGE
The change in IP address pricing is significant and affects many. AWS is at the forefront of this change, having introduced a new fee of $0.005 per hour for each public IPv4 address from February 1, 2024. Although it may seem like a small amount, this results in an extra monthly cost of $3.65 for every resource utilizing a public IP.

Google Cloud is now matching AWS's new rates and even extending them to their Spot Preemptible VMs. Microsoft Azure has introduced new pricing tiers that vary based on IP type and deployment region. IBM Cloud has also increased prices in various global regions, with some areas seeing increases of up to 29%.

These changes could result in significant cost increases for businesses managing many IP addresses. Consider a company using a /23 subnet, which contains 512 IP addresses. With AWS's new pricing, this company would see their monthly bill increase by $1,868.80 for these IPs alone. Over a year, this adds up to an additional $22,425.60 in costs – a substantial sum that could impact a company's bottom line.

IP LEASING STANDS OUT AS A COST-EFFECTIVE ALTERNATIVE
IP leasing offers several advantages beyond mere cost savings. It provides businesses with greater control over their digital assets and opens up new possibilities for resource management.

With IP leasing, companies can access addresses from various Regional Internet Registries, allowing for more precise geolocation and resource allocation. This flexibility can be particularly beneficial for businesses operating in multiple regions or those with specific geographical requirements.

Some IP leasing solutions, such as IPXO, also provide simplified management tools, which often include automated systems for handling WHOIS information, geolocation data, and other administrative tasks. These features can streamline operations and reduce the workload on IT teams.

Another important benefit is provider independence. Leased IP addresses are not tied to any specific cloud provider, providing businesses with the flexibility to switch between services or implement multi-cloud strategies without the complexities of IP migration.

If a company decides to bring their own IP addresses from another provider or move to a different cloud platform, they won't need to go through the time-consuming and potentially disruptive process of renumbering their infrastructure. This flexibility can significantly simplify provider transitions and support more agile, adaptable IT strategies. strategies.

As cloud providers adjust their pricing models, many businesses are turning to IP leasing as a practical alternative. This approach, which aligns with the Bring Your Own IP (BYOIP) concept, allows companies to use leased IP addresses with cloud services, often resulting in significant cost savings.

REAL-WORLD SAVINGS
To put these concepts into perspective, let's consider a practical example. A business requiring a /24 subnet (256 IP addresses) for a year might face annual costs of around $8,800 to $11,000 when using IPs from major cloud providers. In contrast, leasing the same number of IP addresses could potentially reduce this cost to about $1,300 per year – a saving of up to 80%.

These savings can be significant, particularly for small businesses or those with narrow margins. The freed-up funds could be reallocated to innovation, expansion, or other critical operational areas.

ADAPTING TO THE NEW NORMAL
As we progress through 2024, more businesses are likely to explore options such as IP leasing and BYOIP strategies. These methods help businesses stay competitive and maintain service quality while adjusting to changing pricing.

Businesses need to stay informed about their options and be willing to explore new strategies to address the challenge of rising cloud costs. By doing so, they can turn this challenge into an opportunity for more efficient, flexible, and cost-effective operations.

In a world where every dollar counts, IP leasing is a smart strategy for businesses aiming to optimize their cloud spending in 2024 and beyond. Companies like IPXO continue to innovate in this space, which increases the potential for savings and improved IP management.

ABOUT IPXO
Established in August 2021, IPXO is the world's largest fully automated IP address lease and monetization platform. To date, IPXO has successfully distributed IP resources to approximately 900 ASNs and a thousand B2B clients, managing an expanding pool that now exceeds 4 million IPs.

Since September 2023, the company has been developing its Next-Generation IP address management tool. This tool will empower businesses to discover, analyze, and efficiently manage their own IP resources. With a strong presence within the RIR community and the goal of creating a transparent and sustainable IP ecosystem, IPXO is emerging as the business-critical infrastructure platform for enterprises worldwide.

Jolita Puzakova
IPXO
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