A lucrative market for IPv4 addresses emerge

InternetIt’s the law of supply and demand, now that IPv4 addresses have virtually ran out, it has become a valuable asset. Though I never thought companies today would treat it as a commodity which is something to sell and buy. My understanding is that we’re all being weaned away from IPv4 so that IPv6 adoption would be sped up, and since IPv4 is incompatible with IPv6, dumping the former is the way to go.

Microsoft though has taken an enterprising look at it as it plans to buy 470,016 IPv4 addresses from bankrupt telecoms firm Nortel for $7.5m. Those addresses were part of the 666,624 IPv4 addresses put up for sale by the Canadian telecoms firm in order to pay off its creditors.

What would Microsoft do with all these IPv4 addresses now that we’re all moving to the new IPv6 protocol? Its vice president of global foundation services, Dayne Sampson hinted that it was part of Microsoft’s cloud strategy:

Microsoft continues to assess opportunities to acquire useful assets, whether they are from Nortel or other sources to support the tremendous growth of our online services, particularly enterprise cloud services.

Well now that IPv4 addresses can be transferred or sold from one organization to another, many more companies would most likely follow suit, especially if it suits their interests.

Though the guys from the American Registry for Internet Numbers (ARIN) has cautioned that such transfers must first comply with its established policies, so as to avoid hoarding of IPv4 addresses or it being allocated to organizations who have no immediate use for it.

Either way, I’m beginning to wonder if this will create a lucrative market for IPv4 addresses now that supplies have virtually ran out.

Image by Ramberg Media Images

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