Why IPv4 Still Matters for SaaS & Cloud Companies

Business operations in today’s economy are increasingly dependent on cloud-native platforms and software-as-a-service (SaaS) infrastructure because they offer scalability, agility, and a broader geographic reach. The IPv4 protocol is crucial for these cloud-centric networks to remain online, especially for SaaS and cloud companies, which need their services to be available 24/7 for their global customers relying on the protocol.

High-growth SaaS and cloud companies rely heavily on IPv4 for their core operations. Hence, the idea that IPv4 will become obsolete and replaced by IPv4 anytime soon is a misconception. As a result, these companies cannot afford to overlook their IPv4 strategy. With flexible IP resource acquisition and management options, such as IPv4 leasing, SaaS and cloud companies can meet their customers’ needs and remain competitive in the marketplace.

It starts with understanding the similarities and differences between IPv4 and IPv6 as they apply to the unique business operations at SaaS and cloud companies.

IPv4 Scarcity and Why It Still Impacts SaaS Growth

IPv4 was designed for a different world than the one we now occupy. By design, its configuration accommodates 4.3 billion unique IP addresses. While these were sufficient in the internet’s early days, this supply proved unsustainable as connected digital expansion skyrocketed. Increased adoption of internet-connected mobile devices, Internet of Things (IoT) appliances, and cloud environments consumed the limited address pools available worldwide, resulting in IPv4 exhaustion.

By 2020, the Regional Internet Registries (RIRs) had exhausted their IPv4 allocations or were rationing them, creating a market of scarcity, competition, and escalating prices.

For growing internet-connected companies, this type of scarcity creates cost pressure: they need to invest significant capital to acquire sufficient IP addresses. This typically involves reallocating funds from critical areas like developing and refining the platform, increasing headcount, or exploring market differentiation strategies.

Without the necessary IPv4 resources, these companies face operational limitations, such as scaling into new markets more slowly or insufficient performance from secure, but higher-latency communication systems communicating with clients or globally distributed teams.

However, SaaS growth sometimes requires access to clean, reliable IPv4 blocks without bottlenecks like hefty upfront ownership costs or transfer delays.

SaaS Network Scalability Depends on Reliable IP Addressing

Typically, SaaS companies scale in parallel with customer demand, the pace of which can be unpredictable, depending on extrinsic factors like industry shifts or sudden changes to global economies. These companies need a reliable IP address supply to support customers signing on to their platforms globally or optimize latency in new, high-demand regions.

Public, cloud-native IPs refer to IP addresses dynamically assigned by a cloud provider and shared within its infrastructure pool. These IPs often lack exclusivity, which increases the risk of cross-tenant reputation issues, intermittent availability, and limited control over security configurations. There’s also limited transparency into the origin and reputation of the dynamic IP addresses, making it difficult to control a consistent user experience and ensure regulatory compliance. In contrast, dedicated or leased (static) IPv4 addresses give companies full administrative oversight and traceability.

Additionally, SaaS providers must ensure IP continuity across service tiers, data centers, and geographic regions to maintain reliable connectivity. Without dependable, traceable IPs, customer-facing applications may experience performance shortfalls or increased support tickets, negatively impacting the user experience and the provider’s reputation.

However, SaaS scalability is critical to maximizing user experience and uptime. That means SaaS companies need greater control over IP address management to minimize instances of conflicts. They also require assurance of a clean IP reputation before deploying IP address blocks to networks that handle must-have customer data.

Cloud Infrastructure and the IP Management Challenge

IP strategy is important when using cloud infrastructure. While cloud infrastructure offers increased flexibility, companies should actively and strategically handle IP compliance and security. For instance, cloud IPs are often subject to shared reputational risks, especially when one customer’s IP abuse results in blocklisting, impacting other customers on the same subnet.

Although big players that offer cloud IP services, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), make IPs easier to access, they handle provisioning differently. For example, AWS charges customers for Elastic IPs when they are not associated with a running instance, which can drive up long-term costs. Microsoft Azure restricts the number of IP addresses available based on the region and the type of subscription, potentially delaying deployments. Google Cloud Platform allows for global IP allocations, but the availability of those addresses may be limited depending on the location and network configuration.

The hidden costs and complications of relying solely on cloud-assigned IPs create challenges that SaaS and cloud companies should consider when comparing acquisition of addresses as analternative.

IPv4 vs. IPv6: Why IPv6 Still Isn’t the Full Solution

SaaS and cloud companies cannot rely on IPv6 alone because much of the internet’s infrastructure—including customer networks, third-party APIs, and legacy systems—still defaults to IPv4. Full reliance on IPv6 would result in missed connections, degraded service quality, and compatibility issues with users or services still bound to IPv4. To maintain global reach and a consistent customer experience, IPv4 remains essential.

IPv6 adoption is still slow globally. As of early 2025, about 45 percent of Google users access services via IPv6. Many corporate networks still default to IPv4 because their legacy systems were designed to run on this protocol. Transitioning to IPv6 requires significant time and resource investments that compete with other pressing business-critical requirements.

Considering the extensive infrastructure upgrades and reconfigurations required to deploy IPv6, many organizations would rather rely on IPv4’s immediate compatibility, lower overhead, and proven performance. IPv4 also offers a greater reach and is more straightforward to operate. While IPv6 may be a feasible option in the long term, IPv4 comes in handy when SaaS companies need short-term IP resources to fulfill their business objectives.

The Role of IPv4 Leasing in Cloud & SaaS Environments

IPv4 leasing is a strategic alternative to buying IP addresses, especially for growing or flexible networks. By leasing IPv4 resources, SaaS and cloud companies don’t have to exhaust their capital expenditure budgets and can quickly scale operations on demand. An IPv4 lease also provides rapid access to the addresses without waiting for RIR approval.

From an operational standpoint, leasing enables SaaS companies to integrate dedicated IPs into their development pipelines and network automation infrastructure to ensure consistent provisioning while minimizing human error. Doing so helps these companies retain control of the IP resources while managing costs.

Some IPv4 leasing best practices for SaaS and cloud companies to consider include:

Source clean IPs – Before acquiring any IPv4 blocks, companies need to vet them to ensure no history of blacklisting or malicious activity that could compromise their networks. Reputable leasing companies provide this service.
Audit acquired IPs – Throughout the lease duration, it’s critical to evaluate IP usage across networks to identify potential gaps in utilization. If addresses are underutilized, it’s best to consider leasing fewer resources when the lease renews. Likewise, IP overutilization may call for leasing additional addresses.
Deploy IPs strategically – Aligning lease durations with contract cycles and product release timelines ensures IPs are acquired at the right time and support only the business objectives for which they were acquired. This is a key advantage to leasing.

Planning for the Future: Hybrid Strategies That Work

Dual-stack deployment, which provides simultaneous support for IPv4 and IPv6, is becoming the norm. This approach ensures that SaaS and cloud services remain fully accessible to all users, regardless of network protocol, while enabling a seamless transition to IPv6. Instead of choosing between legacy compatibility and future scalability, dual-stack architectures allow companies to benefit from continued IPv4 reliability and the growing IPv6 reach.

Hybrid IP models are particularly effective in environments with complex traffic patterns or global user bases. They streamline user experiences across legacy and modern networks and enable smooth IPv6 deployments without risking service interruptions. For example, newer deployments in well-supported IPv6 regions can take advantage of simplified routing and better performance, while legacy systems operate securely on IPv4.

Ultimately, businesses need to balance IPv4 reliability with IPv6 readiness. That involves proactively managing IP addresses through routine audits, tracking address utilization in real time, and automating provisioning via IP address management (IPAM) tools. These strategies can minimize service disruption and maintain consistent performance—regardless of how or where customers connect to SaaS and cloud platforms.

Why IPv4 Is Still Foundational for the Cloud

Amid rapid innovation, IPv4 remains the backbone for many networks, helping SaaS and cloud companies scale quickly without compromising security and service disruptions. Regardless of which protocol these companies prefer to integrate into their networks, IPv4 scarcity will continue to drive cost volatility in the market. IPv4 leasing remains a strategic workaround for companies to acquire much-needed IP resources cost-effectively and flexibly.

IPv6 is not yet universally supported, meaning IPv4 remains essential. To stay prepared for the IPv4-to-IPv6 transition—before growth forces a rethink, SaaS and cloud companies should audit their IP usage, evaluate their cloud infrastructure, and align on a reasonable address acquisition strategy.

Whether your organization is expanding to new regions, launching new services, or simply optimizing your stack, a robust IPv4 leasing model delivers the flexibility and resilience needed to compete at scale. Our team at IPv4.Global has significant expertise in facilitating thousands of IPv4 transactions, enabling businesses to acquire the IP resources they need quickly and efficiently.

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