32 Bit Real Estate

Two obvious costs of running Internet apps for users on your own hardware: hardware and bandwidth. We buy big servers and run them in racks at network providers that charge us to route large volumes of traffic using BGP4 Anycast. You probably have at

Kurt Mackey
15 min readintermediate
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Overview

The article discusses the costs associated with running applications on Fly.io, particularly focusing on the necessity and expense of routable IPv4 addresses for Anycast networking. It highlights the complexities of acquiring IPv4 addresses, the current market dynamics, and the implications for software developers and businesses.

What You'll Learn

1

How to acquire IPv4 addresses for your applications

2

Why IPv4 addresses are considered a valuable resource in networking

3

When to consider leasing versus owning IPv4 addresses

Prerequisites & Requirements

  • Understanding of networking concepts, particularly IPv4 and BGP4

Key Questions Answered

What are the costs associated with acquiring IPv4 addresses?
Acquiring IPv4 addresses involves costs related to purchasing from previous owners and potential fees from Regional Internet Registries (RIRs). The article notes that IPv4 addresses can cost around $45 to $50 each, which can significantly increase operational expenses for businesses relying on these addresses.
How does Fly.io utilize Anycast networking?
Fly.io uses Anycast networking by assigning routable IPv4 addresses to applications and peering with upstream providers in various regions. This allows traffic to be routed to the closest server instance, enhancing performance and reducing latency for users worldwide.
What is the current market trend for IPv4 addresses?
The market for IPv4 addresses is appreciating, with prices increasing from $45 per address in September 2021 to around $50 currently. This trend indicates a scarcity of available IPv4 addresses, making them a valuable asset for companies.
What are the implications of IPv4 exhaustion for businesses?
IPv4 exhaustion leads to increased costs for businesses that require these addresses for their applications. Companies may need to consider leasing options or acquiring addresses from other entities, which can complicate financial planning and operational strategies.

Key Statistics & Figures

Cost per IPv4 address
$50
As of the latest update, the cost of smaller IPv4 blocks has risen to $50 per address.
Estimated value of AWS's IPv4 addresses
~$1,392,704,525
AWS controls 55,708,181 IPv4 addresses, making their estimated value significant in the current market.

Technologies & Tools

Networking
Bgp4
Used for routing IPv4 addresses in Anycast networking.
Networking
Ipv4
The primary addressing scheme discussed in the context of routing and application deployment.

Key Actionable Insights

1
Consider the long-term value of IPv4 addresses when planning your infrastructure.
As IPv4 addresses continue to appreciate in value, investing in them now could save costs in the future. Businesses should evaluate their needs and the potential for future growth when acquiring these resources.
2
Evaluate the benefits of Anycast networking for your applications.
Anycast can significantly improve user experience by reducing latency and ensuring that users are connected to the nearest server. This is particularly beneficial for applications that require quick response times, such as gaming or real-time data processing.
3
Explore leasing options for IPv4 addresses as a flexible alternative.
Leasing IPv4 addresses can provide immediate access without the upfront costs of purchasing. However, businesses should weigh the risks of potential price increases and the need for long-term stability in their networking strategy.

Common Pitfalls

1
Underestimating the costs associated with IPv4 address acquisition.
Many businesses may not realize the financial implications of needing multiple IPv4 addresses until they begin scaling their applications, leading to unexpected expenses.
2
Ignoring the potential for IPv4 addresses to appreciate in value.
Companies that do not consider the investment aspect of IPv4 addresses may miss opportunities to leverage them as valuable assets in their infrastructure planning.

Related Concepts

Networking Fundamentals
Ipv6 Transition Strategies
Regional Internet Registries (rirs)
Anycast Networking Principles