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Shared IP vs Dedicated IP
When are Shared and Dedicated IP Addresses Used?
These two types of IP addresses are commonly used in web hosting. It's good to understand the differences if you're looking for web hosting services. These two classifications of IP address work the same way for either an IPv4 address or an IPv6 address. I'll explain the difference. Let's start with shared IP addresses.
Shared IP Addresses
Sharing an IP address is a simple way for web hosting companies to cut costs for bare bones cheap web hosting. These companies use one IP address, and share it among all of the web sites hosted on their server. This means that completely different sites will be associated by the same IP address. End users won't see a difference when they type in the site's name. While sites will still load as expected with a shared IP, this method does put you at risk for IP blacklisting and also experiencing any problems caused by the other web sites. To protect yourself you'll want to look into getting a dedicated IP.
Dedicated IP Addresses
A dedicated IP address (or static IP) is registered specifically for a single web site. This IP address doesn't change, and isn't split among multiple domains. A dedicated IP address can be applied to a site no matter if it's hosted on shared or dedicated servers. Dedicated IP simply refers to the use of a single IP address used for a single website. A dedicated IP is protected from unintentional IP blacklisting, and is generally better for several reasons.
A Dedicated IP Address allows you to do more
Any web technology that specifically requires an IP address as opposed to accepting a domain name, will require a dedicated IP. If you want your website to have SSL support for secure file transfers, you'll need a dedicated IP. If you need support for Anonymous FTP, you'll need a dedicated IP. A dedicated IP gives you more flexibility for file transfers. A dedicated IP also makes it easier for VPN support.
Creating an Online Store? You'll want a Dedicated IP
Putting a store online is a great way to reach new customers. The Internet allows you to transfer data effortlessly across the world. By default, all web content is unencrypted, so data transferring across the Internet is susceptible to eavesdropping. While this is fine for general information such as photos and descriptions, it's definitely not a good idea to send your customers' private data unprotected and unencrypted. A dedicated IP will give you SSL support, allowing you to protect your customers' private data by encrypting the transfer. A dedicated IP address is a must for any online store.
Hosting a File Server? You'll prefer a Dedicated IP
While standard file transfers work fine on a shared IP, a dedicated IP will give you more flexibility. A dedicated IP will allow users to access FTP anonymously, and give you better SFTP support. In the case that your domain name wont resolve, a dedicated IP gives you an alternative way to access your server. Because a dedicated IP is only used with one server, you can simply type in the IP address instead of your domain name to connect directly to your file server. For more information on this, see the File Transfer Benefits page here: SFTP Support