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5 Pros and Cons of Shared and Dedicated IP Address

5 October 2023

Many business owners face the tough decision between dedicated and shared IP addresses. The type of IP address you select depends entirely on your business needs and technical expertise. Both have pros and cons, so you must weigh them carefully based on your unique situation.

What is an IP address?

An IP address is a unique number assigned to any device connecting to the internet. IP stands for "internet protocol." IP addresses allow all of your devices to communicate over a network. They power our ability to distribute information between billions of devices, all with their specific locations and identifiers online. They can even be used to remotely connect to other computers using RDP.

What is a Shared IP address?

A shared IP address, also known as a virtual IP address, is an IP address used by many users. Rather than being assigned to a single sender, a shared IP address is allocated to many independent senders to enable their connectivity to the internet.

Pros of a Shared IP address

There are several benefits to using a shared IP address:

1. Lower cost:

Costs are distributed among many users. You can get started for little or no additional fee.

2. Instant reputation:

New users can use an already-established IP reputation to appear more credible. This lets you start email marketing campaigns sooner without "warming up" the IP or risking spam filter detection.

3. Easy management:

The server provider handles monitoring and maintaining the shared IP address. You don't need advanced technical knowledge to manage a shared IP; they deal with issues like spam filtering or blacklisting.

You can combine this with remote access security practices. This will allow you to securely and easily manage your site, from wherever you are.

4. Adaptability:

It's easy to switch to a dedicated IP address in the future. This allows you to choose what suits your needs and budget at any given time.

5. Anonymity:

Sharing an IP address provides some limited level of anonymity. Your requests are mixed in with requests for the other sites on the same IP address.

Cons of a Shared IP Address

While shared IP addresses offer some useful benefits, there are also some potential downsides to consider:

1. Less control

You have limited control over how other users sharing your IP address behave. If they send spam or malicious emails, it could impact your IP reputation. Be ready to see google captcha on many websites your visit.

2. Security risks

Any vulnerability or malware on another site sharing your IP address could potentially impact your own privacy and security

3. Traffic issues

High traffic from other VPN users on your shared IP address could slow down your internet speed. There is more competition for the same bandwidth and resources.

4. Blacklisting possibility

If a shared IP address gets blacklisted due to spam or other malicious behavior from any single user, it impacts the deliverability and reputation of all other users sharing that IP address, too. You could suffer the consequences of another's actions.

5. Less precise data

If you are using streaming with your VPN there is a big chance that you can't stream Netflix, Disney, Hulu, BBC and other streaming platforms on your shared IP address. The best and guaranteed way to stream with a VPN is using static dedicated IP only.

What is a Dedicated IP Address?

A dedicated IP address  is an IP address that is assigned to a single user. Unlike a shared IP address, it is not shared with any other users

Pros of a Dedicated IP Address

1. Full control

You have complete autonomy over your IP address and how it's used. You can configure security, monitor reputation, and make any changes to your IP address as needed without relying on a third party. This control allows you to optimize operations for your specific business needs.

2. Enhanced security

Your dedicated IP address is isolated from other users, so you avoid any vulnerabilities from shared infrastructure. This is because you can implement highly customized security controls and firewall rules. Any breaches impact your site alone and are easier to mitigate with solid security practices.

3. Improved deliverability

Over time, you can build a positive reputation for your dedicated IP address through responsible practices. This, combined with practices like using HTTPS, helps establish you as a trusted sender, leading to better inbox placement and less spam filtering.

4. Safe access to online banking

You will not get any issues if you are using with static IP address while accessing your online banking. In this hackers from another IP can't get acccess to your account even if he gets your password somehow. Moreover, you can access your online banking with no issues while traveling abroad.

5. Increasing your download speed while torrenting

Did you know that you can increase your speed of downloading torrents and other p2p files if you use dedicated static IP address and port forwarding?

Cons of a Dedicated IP Address

1. Higher cost

Dedicated IP addresses typically have a much higher price tag than shared IP options. TrustZone VPN service is now offering dedicated IP address at the same price at any location with a huge discount (starting from $1.99/mo)

2. Slower setup

It takes patience to build a positive reputation and "warm up" a new dedicated IP address. You can't instantly achieve optimal deliverability and inbox placement. You must start slowly and scale up email sends over time as your reputation improves through consistent, responsible use.

3. Higher responsibility

You are responsible for all management and potential problems. Minor technical issues or temporary blacklistings impact only your IP, and you have to contact technical support to make corrections quickly. 

Final Verdict

In conclusion, both shared and dedicated IP addresses have their pros and cons depending on your needs and technical expertise.

A shared IP address can be the most practical and affordable option initially, allowing you to benefit from an established IP reputation and opt-in rates. Dedicated IP is the best if you need streaming Netflix, Hulu, Disney, BBC and other streaming platforms. Dedicated IP with port forwarding is also perfect solution to increase your download speed in case of torrenting.

As a final thought, consider using a VPN with dedicated IP so you have secure access to your online activity. This can be a great way to add an extra layer of security to your connection, helping you to protect your data and your site.