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Title    IPv4 Address Rentals To Mint Millions Of Dollars For AWS
Date    Friday February 09, @12:37PM
Author    janrinok
from the dept.

Arthur T Knackerbracket has processed the following story:

AWS could rake in between $400 million and $1 billion a year from charging customers for public IPv4 addresses while migration to IPv6 remains slow.

The cloud computing kingpin signaled last year that it would start charging customers for public IPv4 addresses from February 1, as covered by The Register at the time.

AWS cited increasing scarcity and claimed the cost to acquire a single public IPv4 address for customer use had risen more than 300 percent over the past few years.

Fortunately, the charge is hardly ruinous – $0.005 (half a cent) per IP address per hour, which equates to a total cost of $43.80 per year for each public IPv4 address you have – excluding any IP addresses that you might own and opt to bring to AWS using Amazon's BYOIP (Bring Your Own IP) service.

However a technologist has done the calculations and estimated that across all users, this will add up to a sum of between $400 million and $1 billion a year for AWS. Not bad for something that was being offered completely free just a few days ago (and is still offered for 750 hours a month at no cost in the AWS free tier).

The source of the billion-dollar claim is Andree Toonk, founder and CEO of network services biz Border0, who is presumably trying to generate business for his own company.

Toonk used Amazon's own IP address range data to estimate that the cloud colossus has at least 131,932,752 IPv4 addresses. Based on the average price for an IPv4 address being about $35 at the time of writing, this means that AWS is sitting on about $4.6 billion, should it wish to divest itself of them.

He also used a script to ping all of the IPv4 addresses in order to gauge how many were "alive" within the AWS network and came up with an answer of about 6 million. But many instances on AWS will have a security policy to not respond to a ping packet, so the actual number of active IPv4 addresses could be double that.

Even with just those six million addresses, that's $262.8 million AWS will earn from charging for IPv4 in a year.

He forecast the headline $400 million to $1 billion figure by projecting a "conservative" estimate that between 10 percent and 30 percent of the IPv4 addresses (approximately 7.9 million) published in the AWS JSON are used for a year.

We asked AWS if it recognized any of these figures, and what the company itself estimated it would earn from charging customers for public IPv4 addresses, but it declined to answer, instead referring us to its original blog post disclosing the charges.

The general feeling among industry experts is that this is fair game, and customers should make plans to migrate to IPv6 if they don't like it – assuming their applications allow this, of course.

[...] "My view is that AWS has been smart in buying up IPv4 addresses, and this is a way for it to cash in until IPv6 adoption makes IPv4 redundant. It's just that organizations are not rushing to move to IPv6," he said.

Previously: AWS to Charge Customers for Public IPv4 Addresses From 2024

Original Submission


  1. "following story" -
  2. "signaled" -
  3. "covered" -
  4. "technologist" -
  5. "offered" -
  6. "AWS JSON" -
  7. "AWS to Charge Customers for Public IPv4 Addresses From 2024" -
  8. "Original Submission" -

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