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Dedicated IP vs Shared IP Address: What Are the Differences?

Dedicated IP vs Shared IP Address: What Are the Differences
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It is controversial whether enterprises should prefer dedicated IP or shared IP addresses. This debate arises from old and incorrect rumors. There is a little source of information about that issue so people can get confused. On the other hand, the Internet is full of myths about the difference between Dedicated IP and Shared IP.

If you are searching for trustworthy and comprehensive knowledge of IPs, you need to keep reading. Especially for companies, IPs are a primary concern on online security. To keep their employees and companies safe, businesses should know the difference between IPs and use the proper one.

Creating an online security infrastructure is impossible without regulating IPs. Even if a company implements a bunch of cyber security tools, it will not meet its whole security requirements. To protect the total workforce, IPs should be taken into account. Besides workforce safety, it provides a reputational advantage and increases business quality.

What is the IP?

Before passing the differences, IP should be defined. IP stands for Internet Protocol. It is an address that is described by digits such as These numbers point out a specific domain on the Internet. Domains are made up of words such as It is called DNS (domain name system). If there was no such thing as domains, people would have to use IPs to access websites. But domains are more memorable than IPs and facilitate Internet usage. Browsers translate words that are typed by users into IP addresses so users can visit accurate websites.

See Also: How to Fix WiFi Doesn’t Have a Valid IP Configuration Problem on Windows PC

What Is a Dedicated IP?

A dedicated IP address only performs on your specific website. It means that if you are using a dedicated IP, it is unique and not used by other domains. From the enterprise perspective, dedicated (or static) IP means all users, employees, and clients adhere to this specific IP address and only they can use this address. It enables enterprises to safeguard their vulnerable assets from cyber threats.

When all users in the company are assigned to a specific IP address, they can manage their work without compromising on security. They do not need to be worried about data leakage and network security gaps. Because their IP is only used by them and there is no place for other unknown users. It diminishes the attack surface and potential risks.

What Is a Shared IP?

While dedicated IP is only used by your company users, shared IP is used by foreign else. Several websites can be attached to shared IP addresses. It can change at any time and depends on servers. Additionally, shared IPs are more complicated for malicious people because they can not smoothly track user activities due to changing IP addresses.

7 Key Differences between Dedicated IP and Shared IP

  1. Dedicated IP offers a better DNS server experience and is easier to set up a structure.
  2. You can not change or modify dedicated IP addresses but shared IP addresses can be changed at any time. Furthermore, static IP allows users to stay in the same location while shared IP does not promise it.
  3. While only specific individuals can utilize dedicated IP, shared IP can be used by everyone, even unknown ones. This is why dedicated IP is more suitable for enterprises. Because they need a protected, concealed, and private network environment.
  4. You can appoint a static IP as more difficult than shared IP. But it is quite comfortable and easy to use dedicated IP in terms of handling company traffic. Because, when dedicated IP only has to take care of a company’s data traffic, shared IP chases whole traffic from whole users.
  5. It makes more sense to use dedicated IP in remote working because it is quite easier to make video conferences or teleconferences via dedicated IP addresses.
  6. Static IP addresses cost more to companies when compared to shared IP addresses. Dynamic IP addresses cost less.
  7. Shared IP sends all data from the same server. Dedicated IP servers send only specific company data.

Dedicated IP addresses are popular in the business world and highly recommended by specialists. Because remote or hybrid working has its dynamics and asks for further protection methods. To meet all these requirements, enterprises should consider specific features and comply with the changing conditions.

Related: How to Fix Windows Couldn’t Automatically Bind the IP Protocol Stack to the Network Adapter

Dedicated IP with a VPN

Companies can use dedicated IPs by a Virtual Private Network. When implemented together, employees can reach data resources regardless of their location. They can manage secure connections with their headquarters without slowing down work thanks to dedicated IP address VPN collaboration.

The dedicated IP allows enterprises to keep their activities private and concealed. As a promising enterprise, you need to construct a well-protected, unpassable, and unique infrastructure. Let your employees concern only about their business and not about cyber security. By using a dedicated IP, enterprises can create the safe business environment that they dream of.

By using a dedicated IP, executives or IT managers can appoint authorized users and determine their roles. Role-based systems provide companies to decide on who can access which resources. So user privileges can be eliminated as well as permissions regulated easily and effectively.

Dedicated IP addresses also enable employees to send and receive data or information via the same specific IP address. This detail has great value in terms of data safety. What is more, is that enterprises can monitor and control access permissions and identities by dedicated IPs.

IP Allowlisting (Whitelisting)

Dedicated IP enables enterprises to make an IP allow list. This allow list contains only verified and permitted users’ IP addresses so companies can prevent unauthorized access to vulnerable company assets. This method gives companies the freedom to choose which user will have permission to reach data.

Why Would Your Company Need a Dedicated IP?

There are several reasons for companies to choose dedicated IP but here are the prominent ones:

  • The velocity is higher than shared IP because dedicated IP only handles your enterprise’s traffic. Since velocity is crucial especially, for a remote workforce, you should utilize dedicated IP.
  • To achieve optimal online security, dedicated IP is highly recommended. Because it provides you a virtual location regardless of your users’ location. You can decide on which location to choose and protect your workforce and company assets from increasing threats.
  • To perform the Zero Trust principle in your organization, dedicated IP is preferable. Because it is smoother in dedicated IP to assign roles and coordinate access permissions. To avoid both internal and external threats, there is no way better than the Zero Trust mentality so dedicated IP should be used to develop it.

Also Read: Best Online Payment Gateways for eCommerce Businesses


Both dedicated IP and shared IP can secure your network. As you can infer from the list above, they have pros and cons. The crucial thing is to decide on what type of business you are and what type of protection your company requires. If you assess these factors rightly, you can decide on the best for your organization.

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