How Google, Amazon, and Microsoft Use IPv4: Lessons from FAANG
Google, Amazon, Microsoft, and other hyperscalers are among the largest IPv4 users and buyers. How they get and use addresses shapes the market and offers lessons for smaller organizations and for holders who want to monetize unused space. Here’s how big tech handles IPv4 and what you can take from it.
How Hyperscalers Acquire and Use IPv4
Big tech gets IPv4 from the same places everyone else does: the secondary market and legacy holdings. RIR free pools are exhausted, so they can’t get new space from the RIR. They buy (RIR transfer), lease, or use what they already hold.
Buy at scale. Acquisitions often involve large blocks. Microsoft, Amazon, Google, and others have bought IPv4 in the secondary market. The mechanics are the same as for smaller buyers: find a block, do due diligence, sign LOA and agreement, complete the RIR transfer. Scale and budget differ; the steps don’t.
Charge for public IPv4. As of February 2024, all major cloud providers charge for public IPv4:
| Provider | Rate | Monthly Cost per IP |
|---|---|---|
| AWS | $0.005/hour | ~$3.60 |
| Azure | $0.005/hour | ~$3.60 |
| GCP | $0.005/hour | ~$3.60 |
AWS announced its fee in July 2023, effective February 2024. Analysts estimated this change could generate billions in annual revenue—a signal of how valuable IPv4 has become.
IPv6 transition progress. Google reports ~47% of its users access services over IPv6 globally. Meta crossed 50% IPv6 for US traffic in 2018 and continues expanding. Despite this progress, dual-stack remains the norm, and IPv4 demand persists.
So big tech runs at scale, but the options are the same: buy, lease, rent. The lesson is to treat the secondary market as the default and choose the option that fits your timeline and budget.
Lessons for Smaller Organizations
Treat the market as default. Don’t plan on getting new IPv4 from the RIR. Plan on buying, leasing, or renting.
Define needs up front. Specify prefix size, region, and timeline. That makes it easier to compare buy vs lease vs rent and get comparable quotes.
Choose by timeline and budget. Need long-term control and have budget for an upfront purchase? Buy. Need medium-term use with lower upfront? Lease. Need short-term or flexible use? Rent. The lesson isn’t to copy scale; it’s to use the same options deliberately.
Consider BYOIP. When cloud providers charge for public IPv4, bringing your own block can cut fees. Smaller organizations can do the same with bought or leased blocks.
What This Means for IPv4 Holders
Demand is strong. Cloud providers, hosting companies, and other organizations need IPv4. Holders with unused space can participate by leasing it out.
If you hold IPv4 and don’t need all of it, leasing out can generate recurring revenue. Your lessees may be providers, hosting companies, or other organizations. Our how to lease out IPv4 guide walks through listing your space, agreements, and managing lease-out arrangements.
Cloud IPv4 charges, BYOIP adoption, and transfer volume will keep evolving. Holders who lease out space can benefit from that demand.
How to Lease Out Unused Space
If you’re thinking about monetizing your IPv4:
- Assess your space. Do you have addresses you’re not using or could free up? Leasing out matches holders with lessees who need medium-term use.
- List and match. Our lease-out IPv4 guide covers listing your block, agreements, and managing arrangements. Your lessees may be providers or their partners.
- Plan for the long term. Demand from big tech and others is likely to persist. Holders who lease out today can benefit from a liquid secondary market.
The secondary market is the default. Smaller organizations can follow the same options; holders can lease out unused space and participate in that market.