Dedicated IP vs Shared IP: What are the differences?


In this blog post, we'll explore the meaning and differences between Dedicated and Shared IP, plus, how IP works, and how to select the optimal IP solution for your business. This will allow you to understand both IP types better and make an informed decision best suited to your business case.

What is an IP Address?

An IP address, short for Internet Protocol address, is like a digital label for devices connected to a network. It helps identify and tell apart devices and computers in various parts of the world.

IP addresses are integral to the Domain Name System (DNS), a system that translates and associates domain names with their designated IP addresses. The DNS essentially functions as a network address book, storing various connections.

As a result, when users want to visit a website, they only need to input the website's domain name instead of grappling with hard-to-recall IP addresses.

When a visitor enters a website's domain name, their Internet service provider (ISP) checks if its domain name resolution server contains the IP address record for the domain. If not, the ISP requests a higher-level domain name resolution server to fetch the IP address linked to the domain name.

As long as a website's domain name boasts a corresponding domain name resolution record, its IP address can always be located on the vast expanse of the Internet.

Without the DNS system, we would be forced to enter complex IP addresses into our browsers instead of user-friendly domain names.

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What is a Shared IP?

Shared IP refers to multiple VPS instances sharing the same external IP address. While each VPS shares this IP address, it is an independent virtual server.

What is a Shared IP

In some cases, a shared IP is sufficient, but in others, separate IP addresses may be required. For instance, applications needing SSL certificates or specific port access typically require separate IP addresses.

What is a Dedicated IP?

A dedicated IP address refers to a unique IP address assigned to each VPS instance within a VPS server environment. Unlike shared IP addresses, a dedicated IP address is specifically reserved for a single VPS instance and is not shared with other users.

What is a Dedicated IP

While a dedicated IP address may incur some additional costs, it is often a preferable choice for users who have higher demands for network performance, security, and flexibility.

Dedicated IP vs Shared IP

Normally, the difference between a Dedicated IP address and a Shared IP address is one that you’re likely to encounter when looking for an IP address. In this part, we will explore the detailed category of Dedicated IP vs Shared IP.

Dedicated IP vs Shared IP: Independence

Dedicated IP addresses provide unique identification for each VPS instance, while shared IP addresses are utilized by multiple instances simultaneously.

Dedicated IPShared IP
  • Independence
  • Each VPS instance has a unique IP address, completely separate from other VPS instances, allowing it to be uniquely identified on the network.Multiple VPS instances share the same IP address.

    Dedicated IP vs Shared IP: Security

    Dedicated IP offers heightened security by shielding users from potential malicious activities that may impact IP addresses.

    Dedicated IPShared IP
  • Security
  • Provides heightened security as your VPS server exclusively uses its dedicated IP address without sharing it with other users for server connections.Security is relatively lower as malicious activities of other shared users may impact the IP address.

    Dedicated IP vs Shared IP: Flexibility of Functionality

    Dedicated IPs provide enhanced flexibility, including easy SSL setup, specific port support, custom security configurations, hosting multiple unique websites, and ensuring reliable email delivery.

    Dedicated IPShared IP
  • Flexibility of Functionality
  • Provides more flexibility in functionality.Some functionalities may be restricted, such as the inability to easily configure SSL certificates or restricted access to specific ports.

    Dedicated IP vs Shared IP: Cost Considerations

    Dedicated IPs often come with higher costs because they require separate allocation for each user, increasing expenses.

    Dedicated IPShared IP
  • Cost Considerations
  • Usually incurs additional costs as each dedicated IP address requires separate allocation and management.Typically more cost-effective as multiple users share the same IP address, saving on resource costs.

    Dedicated IP vs Shared IP: IP Address Blacklisting

    Dedicated IPs impact only their VPS instance due to their exclusive usage.

    Dedicated IPShared IP
  • IP Address Blacklisting
  • If a dedicated IP address is blacklisted, it only affects the VPS instance associated with that IP address and does not impact other VPS instances.If a shared IP address is blacklisted, it affects all VPS instances associated with that IP address, potentially impacting innocent users' services.

    Both Dedicated IP and Shared IP addresses ensure stable performance by remaining unaffected by other users' activities, despite their differences in allocation and usage.

    Selecting the Optimal IP Solution for Your Business

    Explore the ideal scenarios for utilizing Shared IP and Dedicated IP services to meet the unique needs of your business.

    Dedicated IPShared IP
  • Database management

  • Ensure high security and reliability with a dedicated IP for database management.
  • Web browsing

  • Some users only need to browse websites and access basic online services without requiring extra network performance or security.
  • E-commerce

  • Dedicated IPs offer heightened security for e-commerce platforms handling sensitive transactions.
  • Start-ups

  • Shared IPs offer cost-effective online presence for new businesses.
  • Financial services

  • Safeguard transaction data integrity and confidentiality with a dedicated IP.
  • Testing and development

  • Shared IPs suffice for testing and development stages, saving on expenses without sacrificing functionality.
  • Social media operations

  • Opt for a dedicated IP to mitigate the risk of account suspension due to IP sharing.
  • Remote work

  • Shared IPs meet basic remote work connection needs affordably.

    Dedicated IP vs Shared IP Conclusion

    When choosing between a dedicated IP address and a shared IP address, it is important to consider your specific requirements, such as budget, and the nature of your online activities. Dedicated IPs are generally recommended for people those requiring reliability, performance, and reduced blockage risk, while shared IPs can be suitable for more cost-sensitive situations. Ultimately, the selection depends on your individual needs and priorities.