Shared IP Explained: How Different Is It From Dedicated IP?

Before we go right into shared and dedicated IP, we must first understand what an IP address is. IP address stands for Internet Protocol and is a digital address made up of long sequences of digits issued to each domain that adheres to a set of rules or criteria for connecting to the Internet.

IP addresses distinguish between the locations of digital devices linked to the Internet. IP addresses are divided into two categories: shared and dedicated. Here’s all you need to know about the differences between dedicated and shared IPs, as well as how they affect your business’s cybersecurity.

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What is a shared IP?

A shared IP address indicates that your domain shares an IP address with several other domains. When you use a shared hosting solution, hundreds of remote workplaces are hosted on a single server. As a result, all remote workspaces on that server have the same IP address.

Because shared IP addresses belong to several domains, all of the IP address holders will be affected. If one of the site’s owners gets blacklisted, the others will be as well. If you care about your IP reputation, running a business network from a shared IP might be problematic. You may be forced to suffer the repercussions of events over which you have no control.

What is a dedicated IP?

A dedicated IP address is one that is issued by your vendor and can only be used by you and others on your company’s network. This implies that all files shared across business devices, as well as any data moved over the network, remain on the network. In essence, a static (dedicated) IP is unique to your network and assures that your company’s resources are completely private and secure.

Your and your company’s traffic is routed through your own server when using a dedicated IP (Static IP) policy. As a result, performance and speed are enhanced. Shared IPs, which employ servers with previously unknown users, result in poorer performance and processing time.

How are they different?

How you want to use them also affects whether you should use shared or dedicated IP addresses. A dedicated IP address is ideal for a business network, whereas a shared IP address is better for a residential network.

Advantages of a dedicated IP address

A higher level of security

When you have a dedicated IP, your network will have an additional layer of protection against security issues that may arise on the network.

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Decreased connection lapses

You may have interruptions in your internet connection if you’re utilizing a shared IP address. Some of these will just last a few seconds, while others will need you to restart your device. Using a dedicated IP address eliminates this problem, which is beneficial for high data users and increases productivity.

Remote access

You can access your device from anywhere you like when you have a dedicated IP address. You can access your files and data as long as your device is connected to the internet and turned on. This makes it simpler to work on projects while traveling, remain in touch with people, and make use of the advantages that a VPN provides. Since remote work seems to be here to stay, this is an important factor.

Faster download and upload speeds

The speed of access to data is typically faster when you have a dedicated IP allocated to your device since there are fewer inconsistencies linked with it.

Advantages of a shared IP address

Low cost

A shared IP address is less expensive than a dedicated IP address. The reason for this is that the dedicated IP has more options and security practices than the shared IP.

IP addresses with no limits

IP addresses can be reused with shared addresses. Your devices are automatically set up with a new shared IP address as needed inside a network. So, if you bring home a new computer, you won’t have to manually remove the old one or assign it a number since the network or router will handle it for you. When two computers try to use the same IP address, this minimizes confusion.

Benefiting from other domains’ good reputation

If the other domains sharing your IP address have a strong reputation, having a shared IP address may be advantageous. However, the opposite, which is called the bad neighbor effect, can happen as well. If one of the domains in your shared IP address has bad actions, you could potentially bear the brunt of their misdeeds.

Which one should you choose for your business?

Choosing between a dedicated IP vs shared IP can seem confusing, but the bottom line is a dedicated IP is ideal for businesses.

A dedicated IP address keeps the outside world at away, ensuring that your company’s data is always safe from outside attacks. If you value privacy and are willing to accept the additional obligations that come with it, having dedicated IP addresses is a no-brainer.

For entrepreneurs, having a dedicated IP address has numerous benefits. It is the foundation for error-free communication between networked technical devices. It is essential for the operation of a web or e-mail server, as well as any other application where data must be accessed reliably via a fixed Internet address. Peripheral devices like printers, webcams, and staff network computers perform more reliably with a dedicated IP since the devices recognize each other based on their set number.

Shared IP addresses might be enough for home use but if you want to have the utmost security for your business, a dedicated IP is the way.


A dedicated IP address allows your business network to operate in a safe manner while maintaining the same IP address each time. When compared with a shared IP address, it is clear that a dedicated IP address has more benefits for a business network.

As always, don’t forget to review your business and situation before making a decision between a dedicated and shared IP address.