Shared IP vs Dedicated IP

Shared IP vs Dedicated IP – 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 understand both options better and make an informed decision best suited to your business case.

What is an IP?

An IP, short for Internet Protocol, serves as the digital address that guides data packets on their journey across the vast landscape of the internet. Think of it as a fundamental set of rules that allows devices to communicate with one another over a network.

These addresses come in two primary types: IPv4 (Internet Protocol version 4) and IPv6 (Internet Protocol version 6), both of which are essential for uniquely identifying devices on the internet. IPv4, the older and more widely used version, employs a 32-bit addressing scheme and is represented in the familiar dotted decimal format (e.g., 103.168.870.967).

However, with the increasing number of devices connecting to the internet, IPv4 addresses have become scarce. In response to this scarcity, IPv6 was introduced.

It uses a 128-bit addressing scheme, resulting in a vastly larger pool of available IP addresses, represented as a series of hexadecimal digits separated by colons (e.g., 2001:0db8:85a3:0000:0000:8a2e:0370:7334).

What is a Shared IP?

A Shared IP, or Shared Internet Protocol address, is an IP address that is used by multiple websites or devices simultaneously. Instead of each website or device having its own unique IP address, they share a common IP address.

This sharing of resources is a common practice in web hosting and is often employed by hosting providers to optimize resource allocation and reduce costs. In web hosting, multiple websites can be hosted on the same physical server, and they share a single IP address associated with that server.

 

This is an economical way for hosting providers to serve many websites without the need for each site to have its dedicated IP address. Shared hosting plans are typically more affordable than dedicated ones, making them suitable for smaller websites, blogs, and businesses with modest traffic and resource requirements.

However, there are some limitations to shared IP addresses. Since multiple websites share the same IP, if one of the websites on the shared IP address is involved in malicious activities or spam, it can potentially impact the reputation of the IP address, affecting the email deliverability and overall website performance for all the websites sharing that IP.

For companies and websites with specific needs for enhanced performance, security, or control, dedicated IP addresses may be a better choice, which we’ll explore further in this blog.

How Shared IP Works

Let’s discuss how shared IP works.

• Multiple senders use the same IP address, which the ESP manages.
• The ESP divides the IP into pools, each handling a specific volume of emails.
• The placement of these pools is managed by engagement metrics, such as complaint rates, bounce rates, and open and click rates.
• This setup allows senders to benefit from the reputation built by other senders in the pool, making establishing a good sender reputation easier.

When to Use a Shared IP Address:

1. Cost is a Major Consideration:
   • Shared hosting with a shared IP is generally more cost-effective. If you are on a tight budget, shared hosting might be a more economical choice.
2. Simplicity and Ease of Management:
   • If you are not experienced with server configurations or don’t want to deal with IP address management, shared hosting with a shared IP is usually simpler to set up and manage.
3. Resource Efficiency:
   • Shared IP addresses can be more resource-efficient, especially in virtual hosting environments, as server resources can be dynamically allocated based on demand.
4. Widespread Adoption:
   • For many websites and applications, shared hosting with a shared IP address is sufficient. It is widely supported and accepted, making it a convenient choice for a broad range of users.
5. Easier Scaling:
   • If your website’s traffic fluctuates and you need to scale resources up or down easily, shared hosting is often more flexible.

What is a Dedicated IP?

A Dedicated IP, or Dedicated Internet Protocol address, is a unique and exclusive IP address assigned to a single website, server, or device. Unlike shared IP addresses, where multiple entities share the same IP, a dedicated IP provides an unchanging digital address for a specific entity.

Dedicated IP addresses are favored in situations where stability, control, and security are of utmost importance. Businesses with high-traffic websites, e-commerce platforms, and those needing enhanced performance and security often choose dedicated IPs to maintain a consistent online presence and gain greater control over their server environment

 

Furthermore, dedicated IPs are commonly used to enable secure data transmission via HTTPS by binding SSL certificates to a specific IP. This ensures data encryption and authentication, enhancing the security of online transactions and user data. In email marketing, businesses use dedicated IPs to maintain a positive email-sending reputation. This increases the likelihood that marketing emails will successfully reach recipients’ inboxes, avoiding spam filters and other delivery issues.

For remote access solutions, virtual private networks (VPNs), and secure connections, dedicated IPs play a crucial role in establishing a stable and secure link between remote devices. This level of stability and control is essential for organizations relying on these technologies to connect to their networks securely.

How Dedicated IP Works

Let’s discuss how Dedicated IP works.

• Each website or server has its own dedicated, non-shared IP address.
• The dedicated IP address is exclusively assigned to and controlled by the website owner or hosting account.
• This allows for greater control, security, and customization options compared to a shared IP address.

Use a Dedicated IP Address When:

1. SSL/TLS Certificates Require It:
   • If your website needs SSL/TLS encryption and you have users accessing it with browsers that don’t support Server Name Indication (SNI), you may need a dedicated IP for each SSL/TLS certificate.
2. Email Deliverability is Critical:
   • If your website relies heavily on email communication, having a dedicated IP can help maintain a positive email reputation, as your deliverability won’t be affected by the actions of other users.
3. Specific Server Access Requirements:
   • Certain server configurations or applications may require direct access through a dedicated IP. If you have specific server-side requirements, a dedicated IP might be necessary.
4. Application Compatibility:
   • Some applications or scripts may function more reliably with a dedicated IP, particularly if they rely on IP-based authentication or tracking.

Shared IP vs Dedicated IP – Key Difference

Specifications	Dedicated IP	Shared IP
Independence	Each VPS instance has a unique IP address, completely separate from other VPS instances, allowing it to be uniquely identified on the network.	Multiple VPS instances share the same IP address.
Flexibility of Functionality	Provides more flexibility in functionality.	Some functionalities may be restricted, such as the inability to easily configure SSL certificates or restricted access to specific ports.
Cost Considerations	Usually incurs additional costs as each dedicated IP address requires separate allocation and management.	Typically more cost-effective as multiple users share the same IP address, saving on resource costs.
IP Address Blacklisting	If a dedicated IP address is blacklisted, it only affects the VPS instance associated with that IP address and does not impact other VPS instances.	If a shared IP address is blacklisted, it affects all VPS instances associated with that IP address, potentially impacting innocent users’ services.
Security	Provides heightened security as your VPS server exclusively uses its dedicated IP address without sharing it with other users for server connections.	Security is relatively lower as malicious activities of other shared users may impact the IP address.