DEV Community

Cover image for The IPv4 Decision Matrix: A Framework for Infrastructure Teams
Artem Kohanevich
Artem Kohanevich

Posted on

The IPv4 Decision Matrix: A Framework for Infrastructure Teams

Every infrastructure team eventually hits the same wall: you need more IPv4 addresses, and you need them yesterday.

I've seen teams burn weeks debating whether to buy or lease. The problem? They're asking the wrong question. It's not about which option is "better"—it's about which option fits your specific situation.

Here's a practical framework I use to cut through the noise.

The Three Variables That Actually Matter

Forget the marketing fluff. Your decision comes down to three numbers:

  1. Time horizon (in months)
  2. Capital availability (cash on hand vs. monthly budget)
  3. Flexibility requirements (scale up/down probability)

Let me show you how to use these.

Quick Math: The Break-Even Formula

Break-even (months) = Purchase Price per IP / Monthly Lease Rate
Enter fullscreen mode Exit fullscreen mode

With current 2026 market rates:

  • Purchase: ~$28-30 per IP
  • Lease: ~$0.38-0.45 per IP/month

Plugging in median values:

$29 / $0.42 = ~69 months ≈ 5.7 years
Enter fullscreen mode Exit fullscreen mode

But here's what most people miss: opportunity cost.

That $7,500 you'd spend on a /24 block? If invested elsewhere at 10% annual return, the effective break-even extends to 9-10 years.

The Decision Matrix

Here's the framework I recommend:

Lease When:

  • Project duration < 3 years
  • Cash flow matters more than asset ownership
  • You're testing new markets or scaling unpredictably
  • Speed to deployment is critical (days vs. weeks)
  • You need regional IPs without registry bureaucracy

Buy When:

  • Infrastructure is stable for 7+ years
  • IP reputation is business-critical (email deliverability, hosting)
  • Regulatory compliance requires ownership documentation
  • You view IPv4 as a strategic asset (limited supply, potential appreciation)

Hybrid Approach:

Most mature teams do both:

  • Own core blocks for stable infrastructure
  • Lease additional capacity for spikes, launches, or experiments

Real-World Scenario

A SaaS company I worked with needed 1,024 IPs (a /22 block) for a sudden user surge.

Option A: Buy

  • Cost: ~$26,000-30,000 upfront
  • Timeline: 3-6 weeks (transfers, registry updates)
  • Internal approval: Another 2-3 weeks

Option B: Lease

  • Cost: ~$410/month
  • Timeline: 48 hours
  • Result: Online in 2 days, saved $25K+ in immediate capital

After 6 months, when the project stabilized, they had real usage data to decide if ownership made sense. That's the power of leasing as a validation tool.

Technical Considerations

Beyond cost, consider:

Routing Security (RPKI)

Modern networks increasingly require cryptographic proof of IP authorization. Ensure your provider supports RPKI, not just legacy LOAs.

IP Reputation

A blacklisted block costs more than the addresses themselves. Whether leasing or buying, verify the block's history and monitor it actively.

Registry Policies

RIPE NCC requires 24-month holding periods before resale. ARIN has different transfer rules. Know your region's regulations.

The Bottom Line

Stop thinking "buy vs. lease" and start thinking "when to buy, when to lease, and how to combine both."

The infrastructure teams that win aren't the ones who picked the "right" option—they're the ones who matched their strategy to their actual business needs.


Building out your IPv4 strategy? I've been working with ipbnb.com on marketplace solutions for both IP owners and renters. Worth checking out if you're evaluating options.

What's your approach? Do you own, lease, or mix both? Drop your experience in the comments.

Top comments (0)