When it comes to IT infrastructure management, one of the main questions that needs to be addressed is whether to use a dedicated IP or a shared IP. Both options have pros and cons, and the choice will depend on specific needs and priorities.
In this blog post, we'll explore the differences between dedicated and shared internet protocol types and factors you should consider when deciding which one to use. This will allow you to better understand both options and make an informed decision best suited to your business case.
Internet Protocol (or IP) is a set of rules governing how data is sent over the internet. This allows different devices to communicate with each other using a shared system. Users interact not with IP addresses directly but via domain names. It’s the DNS resolver that retrieves unique IP identifiers.
Every internet-connected device has a unique IP address allowing the data to be sent to and from it. Data packets are routed using a combination of the source and destination IP addresses.
It should also be mentioned that there are two versions of IP addresses: IPv4 and IPv6. IPv4 is the older of the two and uses a 32-bit address format, allowing for a maximum of 4.3 billion unique addresses. IPv6, on the other hand, uses a 128-bit address format, allowing for a vastly larger number of unique addresses. This is a future-proofing measure, allowing more combinations to be used.
A shared IP or dynamic IP refers to an IP address that multiple users use. In the context of external IP addresses, multiple users on a single network use a shared IP address to connect to the internet. This IP address is assigned by an internet service provider (ISP) and is shared by all the devices connected to that network.
An ISP oversees the rotation of shared IP addresses and rotates them among its user base. Shared IP addresses are typically assigned from an address pool maintained by the ISP to optimize resource utilization, and no user has a single ownership of it. This helps to drive IP address maintenance costs down and maximize their usage on the ISPs' part.
A shared IP address works like any other IP address — it enables data exchange between two destinations. As shared IP addresses are rotated among a large pool of users, external websites cannot distinguish between the devices or users accessing them through the shared IP address pool.
This can cause some issues, such as:
However, internally, each device or user on the same shared IP address will have a unique internal IP address. The network translates between the external shared IP address and the internal IP address of each device using a process called Network Address Translation (NAT).
A dedicated IP refers to an IP address exclusively allocated by a single entity rather than shared among multiple users or devices. It must be obtained for an additional fee, typically through an ISP, VPN service, hosting provider, or other network service providers. These addresses are distributed by Regional Internet Registries (RIRs) and are commonly used for secure remote access, email delivery, and other specialized networking needs.
This can be useful in specific scenarios where businesses need stricter control over their IP addresses. Allowlisting—restricting access to specific resources only to approved IP addresses—helps network administrators minimize security gaps and reduce the risk of unauthorized access.
Dedicated IPs are exclusively assigned to a specific device or user instead of shared among multiple devices or services. This means the addresses don't reset or get assigned to other users.
The downside of this is that dedicated IP addresses usually come with an additional cost. However, they provide greater control over network management. For example, network administrators can prevent unwarranted access to internal systems by specifying a list of allowlisted dedicated IP addresses. That way, only matching IPs can be allowed, preventing intruder connection attempts. In addition, having a fixed IP minimizes the number of captchas users have to fill in when browsing and reduces IP blacklisting to faster and more secure connections.
The difference between dedicated IP vs shared IP addresses boils down to their exclusivity. Shared IP addresses are freely available to all users, and their ownership rotates. Meanwhile, dedicated IP addresses are reserved for a sole entity.
In most use cases, a shared IP address is cost-effective and doesn't require any maintenance. However, using a dedicated IP address makes much more sense in business contexts.
In short, shared IP addresses are both cheap and easy to maintain, and the drawback of more cybersecurity risks. On the other spectrum, dedicated IP addresses provide greater control, privacy, and security, but they come at a higher cost.
In conclusion, choosing between a shared or dedicated IP depends on your needs—whether for email marketing, hosting, or secure remote access. If network security and controlled remote access are your priorities, a dedicated IP can provide an extra layer of protection.
NordLayer offers dedicated IP addresses to create virtual private gateways, enable IP allowlisting, and implement multi-layered network security measures. This ensures secure access to company resources while maintaining network visibility and control.
With NordLayer, you can streamline secure access without additional hardware investments, making it easier to scale as your organization grows. Get in touch with NordLayer today to explore how dedicated IPs can enhance your network security strategy.
Yes, you can buy a static IP address from your ISP, VPN service or hosting providers. Then you'll receive a static IP address that will remain the same each time you connect to the internet, unlike a dynamic IP address that changes each time you connect.
Not all ISPs offer static IP addresses, and those that do will likely charge an additional fee. Therefore, to understand their costs, you should evaluate their availability and pricing personally.
Yes, you can change your dedicated IP address, but the process depends on your hosting provider, VPN service, or network administrator.
If you have a hosting provider, you can usually request a new dedicated IP address through their support team—some may charge a fee, while others offer it for free. If you manage your own network, changing the IP address typically involves modifying your router or server settings.
However, changing a dedicated IP address may have consequences, such as affecting email deliverability, requiring DNS updates, or impacting SSL certificates. The process varies based on your specific use case and provider.
Using a dedicated IP as part of robust security and secure network access solution like NordLayer is highly recommended for businesses to achieve optimal network security.
Yes. With a dedicated IP (static IP), your own server handles your and your company's traffic — nobody else's. Therefore, performance is improved, and speed is quicker than a shared IP, which uses servers with other unknown users.
No, it's not dangerous to share an IP. It is, however, best practice to implement comprehensive access management to your vital resources, protecting them from users inside and outside your network. Ensure those attempting to access specific areas of your network are authorized/trusted to do so — having a dedicated IP address is a significant step towards this.
If you sign up for NordLayer's Server with a dedicated IP option, you receive your dedicated IP that will serve only you and your business.
Agnė Srėbaliūtė
Senior Creative Copywriter
Agne is a writer with over 15 years of experience in PR, SEO, and creative writing. With a love for playing with words and meanings, she creates unique content. Introverted and often lost in thought, Agne balances her passion for the tech world with hiking adventures across various countries. She appreciates the IT field for its endless learning opportunities.
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