Amazon AWS To Charge for Public IPv4 Address Next Year

network stock image
(Image credit: Shutterstock)

IN yet another sign of the increasing scarcity of Ipv4 addresses, citing a pricing increase of 300% for new addresses, Amazon Web Services (AWS) will introduce a charge of $0.005 per IP per hour for all public IPv4 addresses starting from February 1, 2024. New charges will apply to Virtual Private Cloud (VPC), Amazon Global Accelerator, and AWS Site-to-site VPN tunnel services using public IPv4 addresses. The advance notice was given to AWS customers just ahead of the weekend via a blog post by the Chief Evangelist of the firm, Jeff Barr.

The main reason behind AWS' introduction of charges is the purported 300% rise in costs in acquiring a single public IPv4 address over the last five years (due to scarcity). It is also highlighted in the blog that there is a need to conserve IPv4 addresses and modernize by accelerating moves to IPv6 (no hourly IP charges).

So, $0.005 seems like a very small charge, but remember that this is an hourly charge and will apply to every public IPv4 address allocated in your account, whether attached to an AWS service or not. A quick calculation shows that for one IPv4 address, the new charging amount will be $43.80 per annum. The chart below should help you see where the charges apply and what exactly is new.

(Image credit: AWS Blog)

Amazon is also introducing a new Public IP Insights tool for users to audit their use of public IPv4 addresses. It hopes the free tool guides users to see, sort, filter, and learn more about each of the public IPv4 addresses they are using. It will also help users see where updates to their apps might minimize the effects of new charges. The AWS blog has previously provided guidance on moving services to IPv6.

To provide some background to the new charges AWS is advising its customers to be ready for, let's look a bit closer at IPv6, the destination to which customers are being nudged. IPv6 was designed to replace IPv4 for the provision of internet addresses, as the latter is limited to 4.3 billion devices by nature of its 32-bit addressing scheme. IPv6 was created in 1998 with 128-bit addressing to provide approximately 340 undecillion addresses. That ought to be enough for anybody.

IPv6 wasn't doesn't just provide an extension to the number of addresses available; it's not just like adding digits to phone number lengths. It is also claimed to handle packets more efficiently, improve performance, increase security, and more. Google charts IPv6 adoption among its users, and it reckons just over 42% of the internet uses IPv6 right now. Meanwhile, most of the world is thought to have run out of IPv4 addresses sometime between 2011 and 2018, with almost all 'new' addresses put into use today being IPv4 addresses that are abandoned or have been sold for re-use.

Mark Tyson
Freelance News Writer

Mark Tyson is a Freelance News Writer at Tom's Hardware US. He enjoys covering the full breadth of PC tech; from business and semiconductor design to products approaching the edge of reason.

  • Giroro
    What does a 300% increase actually mean to Amazon itself? How exactly do IP addresses cost Amazon anything to hold onto, anyways?
    Did the "wholesale" cost to them jumped from $0.00001 per year to $0.00003, or from $10 to $30? Because I severely doubt the cost to maintain a list saying amazon pretend-owns some made-up computer numbers costs anywhere in the same galaxy as a "tens of dollars per number per year" magnitude.

    If it does cost them that much, then whatever organization is in charge of issuing these numbers probably needs much tighter international regulation.
    Reply
  • vern72
    "That ought to be enough for anybody"

    Uh-oh. That means we'll run out of addresses in three years. :LOL:
    Reply
  • toffty
    vern72 said:
    "That ought to be enough for anybody"

    Uh-oh. That means we'll run out of addresses in three years. :LOL:
    I know you're joking but for anyone that's not aware, ipv6 has an address space of 2^128 or 3.4×10^38. With that address space, we'd be able to assign billions of addresses to every star in the observable universe.
    Reply
  • bill001g
    Giroro said:
    What does a 300% increase actually mean to Amazon itself? How exactly do IP addresses cost Amazon anything to hold onto, anyways?
    Did the "wholesale" cost to them jumped from $0.00001 per year to $0.00003, or from $10 to $30? Because I severely doubt the cost to maintain a list saying amazon pretend-owns some made-up computer numbers costs anywhere in the same galaxy as a "tens of dollars per number per year" magnitude.

    If it does cost them that much, then whatever organization is in charge of issuing these numbers probably needs much tighter international regulation.
    Actually they do cost a lot of money. All the so called "free" ones where given out years ago. In theory at least if a company were to stop using them they were suppose to be returned to the organizations that control them but that does not happen in the real world.

    I know years ago when Nortel went bankrupt they had a number of large IP blocks. They had a class A block and some other class b and c blocks. I know microsoft paid a lot of money to get control of some of them.

    In effect they are scalped by who ever has control and sell them to the highest bidder even though they are not suppose to be able to do that. Many companies that used to run their own data centers needed blocks of IP addresses now that they run in the cloud they no longer need them. I know a company that I used to work for traded blocks of IP for free data center services for a period of time to cloudflare when they moved their stuff to the cloudflare data centers.

    There are actually a lot that are not being used properly. Like microsoft many of the very large companies that have been around for years still use public IP on their internal lan even though there is no need or direct connection to the internet. This was all back in early days of the internet where it was not as important to have massive levels of firewalls between your internal networks and the internet. Home internet was via dialup modem and only very large companies and colleges has real internet access.

    Someday maybe some accountant will decide the cost to redo all the internal IP blocks is worth selling the public IP.
    Reply
  • umeng2002_2
    I live in a decent suburb. We only got IPV6 within the last two years.
    Reply
  • merlinq
    umeng2002_2 said:
    I live in a decent suburb. We only got IPV6 within the last two years.
    I have 2.5 Gb cable service, and still no IPv6 available
    Reply