Which Is Better For Your Business – Dedicated Ip Or Shared Ip?

In today’s digital world, it’s quite important to choose an IP address. In case organizations don’t select a suitable IP address, then it can impact the website’s performance. But, whether you are thinking about enhanced security or embracing a cost-effective solution, it’s vital to understand the options. So, in this article we will cover more about IP addresses and which could be ideal for your business. 

How Do IP Addresses Work?

Whenever you’re surfing the internet, an IP address helps a device to find data for quick retrieval. Among the tasks, the IP address identifies a network or the device’s location. When the device is connected to the internet, then the IP address can lie between 0.0.0.0 and 255.255.255.255. However, the IP address will change depending on the network’s location. Let’s understand this through an example.

Now, when you’re using the internet at your residence, then the computer will be running with a certain IP address. But, if you connect the computer to your friend’s internet connection, then the IP address will differ. This means that the IP address identifies the location from where you’re using the internet.

What Are The Types Of IP Addresses?

Primarily, IP addresses fall under two categories. These are nothing but website IPs and consumer IPs. But, if the location is not fixed, then the computer may run on a Dynamic IP or static IP address.

Let’s check more about consumer IPs and what comes under this type.

1. Consumer IP Addresses

Under the category of consumer IP addresses, you will observe public and private IP addresses. Such types of IP addresses are assigned only to those devices which have the internet connection enabled. 

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If you’re using many devices with the internet connection turned on, then these will be assigned a private IP address. Soon after the devices are connected to a network, individuals can share content from one device to the other. But, this isn’t the case with a private IP address.

Whenever a device receives the internet connection through a router, then a private IP address is assigned. After the connection with the internet is established, the private IP can enable communication between different devices. These are often used in case of corporate networks. Devices that are part of a large network are identified by such IP addresses. 

2. Website IP Addresses 

As the name implies, website IP addresses are unique identifiers that help in identifying the website on the internet. Such kind of IP addresses can either be dedicated or shared IPs. The assigned IP addresses will vary depending on the number of users. These refer to sharing the same IP address pool. Besides, as anybody can navigate a website, dedicated and shared IPs also fall under public IP address. 

A dedicated IP address serves as an exclusive identifier on the internet. This is unique for every site. Conversely, many sites use a shared IP address simultaneously. To clear the confusion in your mind, let’s check a simple analogy.

Let’s suppose that these IPs are actual stores. A specific network location can be accessed with a dedicated IP address. This is analogous to having a sole storefront on a particular street. As your business is spread across the street, people are likely to find you with ease. However, when you think about a shared IP address, then it’s like a small store inside a shopping arcade. Since your store occupies a small area, people will find it tough to seek your store. 

3. Dynamic And Static IP Addresses

As you might be familiar with the terms, ‘Dynamic’ and ‘Static’, you will easily figure out the difference. Unlike dynamic IP addresses, which are assigned temporarily and can change, static IP addresses remain constant. This indicates that Dynamic IPs are only in use for a short period. Upon connecting to a new network, the device’s IP address changes automatically.  Most of the time, people prefer using devices with a Dynamic IP. This makes it tough for hackers to access the network because they are unable to guess the constantly changing IP address. Static IP addresses are allocated and maintained by the internet service provider. The IP address will not change until the individual requests for a new one. Normally, a public IP will come under the static IPs class.

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What Is The Relationship Between An IP Address, A Web Host, And A Web Server?

Now, when you’re aware of what an IP address is, let’s check out how people find your website. We shall also cover how an IP address is related to a website.

What Is A Website Hosting?

To keep the website running, you need web hosting services.  As an individual assists you, he will provide a space on the server to host the IP.  He will also offer security features, and software updates. 

Let’s check an example to understand this better. 

If you consider the analogy stated above, then website hosting providers are similar to landlords. Whether you use the entire street or a small area, the landlord will offer some space on rent.  Once you start using the space, you will be able to manage your business well. In other words, website hosting is a platform that offers storage space.  It doesn’t offer an internet connection. Instead, it represents a location for the website. 

As far as the website IP address is concerned, it is a connection with the internet. Online visitors can go through the website once the Internet Service Provider assigns an IP address.

Various Types Of Website Hosting

There are many types that you will come across with website hosting. Here’s an overview of the various types of website hosting.

1. Shared Hosting

Shared hosting involves multiple websites residing on a single server. The resources are also shared while hosting. This means that you will be sharing the space on the server with other people managing other websites. 

2. Dedicated Hosting

The website’s files occupy the entire server with dedicated hosting. This means that you have complete control over the server’s resources. 

3. Virtual Private Server (VPS) Hosting 

With VPS hosting, businesses can host a website on a virtual server space. In that case, the actual server is divided into many virtual servers that have a set of its own resources. 

Apart from the ones stated above, websites may also be hosted on a large network of remote servers. Such a type of hosting is reliable because the data gets distributed on many servers. 

4. Web Hosting Versus Web Servers

Now, let’s check out the difference between different web hostings. 

• Many websites are hosted on the same server under shared hosting.
• If many IP addresses exist with a similar kind of server configuration, then it is known as a shared server.
• Dedicated IP hosting assigns a unique IP address to a website, even when it shares server resources with other websites. But, if the website has been hosted on an exclusive server, then it’s called dedicated server hosting. 

With this in mind, a small sized firm shouldn’t think about a dedicated server.  This is because the web traffic to the website is quite less. However, if you’re running an enterprise or a large company, then a dedicated server is ideal.

How Do People Find Your Website?

As people are searching for a website, they are completely unaware about the IP address. So, here’s how everything works in the background.

• After you create a website, the domain name is the site’s name. 

• The Domain Name System (DNS) later keeps a record of the website’s name. In addition, the service provider will offer a shared IP address for the site.

• After  typing the domain name, the DNS will convert the site’s name into the IP address.  A bit later, it will locate the IP address and present the website online.

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What Kind of IP Address Should Your Website Have?

If you’re managing a small or medium scale business, then you should consider a public IP. You should also consider hosting the website on a shared server. However, you can choose the desired IP address. 

Most web hosting providers recommend shared IP addresses as a standard option for new websites. But, with time, you can decide to go for a dedicated IP address. 

Regardless of what you choose, you should first consider the needs and size of your business. You should also make a decision on how much web traffic should be driven to the site. Towards the end, you should also consider a plan if you can bear the costs associated with regular website maintenance. 

Benefits Of Dedicated IP Addresses And Shared Ip Addresses

Both, shared and dedicated IP addresses can benefit diverse companies. But, we would again state that the choice will depend on your business needs. Let’s check out the benefits of the IP addresses separately. 

Dedicated IP Advantages

Mostly, a dedicated IP address offers more flexibility. Here are some advantages of a dedicated IP address.

1. Improves Email Deliverability

You can send emails with a dedicated IP address to many individuals. This is usually the case because Gmail trusts emails sent from systems that have a dedicated IP address. Even when you send many emails at the same time, they will not land in the ‘Spam’ folder. 

2. Keeps The Website Secure 

Websites with SSL certificates are secured by dedicated IP addresses. This certificate will ensure data encryption during site navigation. There will also prevent stealing of data even when there are many online transactions. 

3. Makes The Website Run Faster

When your website is running with a dedicated IP address, you don’t have to bother much about web traffic. Many websites across the internet will not ruin the performance. Online visitors can also expect high speed while navigating the website. 

4. Authorizes Remote Access Easily 

Once a dedicated IP address is assigned, it can help access remote files without any restrictions. On the other hand, an IT professional can restrict access from systems that have some other IP addresses.

5. Shared IP Advantages

Just like dedicated IP addresses, shared IP addresses have their own advantages. 

6. Cost-Effective

Shared IP addresses are affordable because the IP is distributed among different users. This type of IP address is useful when you have your own website or you’re showcasing a small business online. 

7. Easier Management

Less management overheads can be expected with shared hosting plans. Usually, the hosting provider handles the IP along with everything that’s needed to host a website. 

8. Provides Anonymity 

A certain degree of anonymity is also another benefit of a shared IP address. As many websites share the same IP address, hackers may not be able to trace your website’s location easily. This ensures privacy especially for individuals who want a website but don’t want to reveal their identity. 

Choose What Suits You The Best For Your Needs

While both, dedicated and shared IP addresses are beneficial, choosing the most suitable one is important. This will entirely depend on your needs and what type of website you want to host. Shared IP addresses can be considered when you’re about to start a small business. However, dedicated IP addresses can be chosen if you’re concerned about email deliveries and your site’s performance.