Forbes Article from NFWare CEO Helps Web Companies Tackle IP Address Shortage

28/10/2024
There are no new IPv4 addresses, only what can be bought from brokers with prices increasing as inventory gets used up. This situation initially impacted fast growing Internet Service Providers (ISPs), however, as digital services expand and more devices come online, web companies are now facing IPv4 addressing challenges.

But there are strategies that web firms can take and that’s the topic of an article on Forbes.com written by our CEO and co-founder Alexander Britkin.

The IPv4 Exhaustion Problem

IPv4, the original internet address system designed in the 1980s, was never intended for today’s vast, interconnected world. With only a 32-bit address space, it did not handle the explosive growth of devices—from smartphones to IoT sensors.

Though IPv6 was long ago introduced as a solution, with an almost infinite number of addresses, its adoption has been slow due to compatibility issues and high implementation costs. As a result, IPv4 remains dominant, and the demand for IP addresses is steady.

This scarcity has driven up the cost of IPv4 addresses, creating a robust aftermarket where companies buy and sell address blocks. But with supply dwindling and prices increasing, web companies need more sustainable solutions to keep up with growth.

Options for Addressing the IPv4 Shortage

According to Britkin, web companies have three main strategies to manage the shortage:

1. Transition to IPv6: While IPv6 offers a long-term solution with unlimited addresses, it requires significant changes to infrastructure and remains a slow process for most companies.

2. Purchase IPv4 Addresses: Companies can buy addresses from brokers, but this is a costly, short-term option with decreasing availability.

3. Carrier-Grade Network Address Translation (CGNAT): CGNAT allows multiple devices to share a single public IPv4 address, optimizing the limited pool of addresses. By using CGNAT, web companies can continue growing their networks without overwhelming their infrastructure.

The Role of CGNAT

CGNAT technology works by assigning private IPv4 addresses for local networks and converting them into public addresses for internet access. This allows up to 64 users to share one public IP address. Initially deployed as hardware appliances, modern CGNAT solutions are now virtualized, allowing companies to run the software on commercial servers, reducing management costs.

Virtualized CGNAT is particularly well-suited for web companies that are already skilled in managing off-the-shelf servers, making it a cost-effective solution.

Challenges with CGNAT

Despite its benefits, CGNAT does have challenges that affect network design. It complicates network management and can hinder applications that require direct IP connectivity. To overcome these obstacles, companies need high-performance infrastructure that supports line-rate CGNAT with throughput up to 400 Gbps. Additionally, advanced monitoring tools are necessary to address security, compliance, and troubleshooting needs.

High-Performance CGNAT as a Critical Solution

As web companies continue to grow, the demand for IP addresses will only intensify. High-performance CGNAT can help these companies build scalable, secure networks, ensuring they can meet future demands. Just as ISPs adapted to the IPv4 exhaustion, web companies must now find innovative solutions to navigate this evolving digital landscape. For more insight into the IPv4 challenges and solutions, read the entire Forbes article here.
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Forbes Article from NFWare CEO Helps Web Companies Tackle IP Address Shortage