The Difference Between A Shared IP And An Exclusive IP, And Their Business Relevance

If the terms from the title sound strange to you, it is a good idea to first understand the meaning of an IP address and the role it plays in general. However, if you own a computer or run a website, this subject is relevant to you and your business. You don’t need to be a tech wizard to grasp the basics; it is straightforward.

What is an IP address?

IP is short for Internet Protocol. An internet protocol (IP) is a numerical label that is given to a computer or any other digital device, such as a photocopier or tablet, that facilitates a connection between other devices or computers through the internet.

The primary function of an IP address is to act as an identifier and locating protocol for the billions of digital machines connected to the web. In the same way someone needs your mailing address to send you a parcel, a remote computer communicates with your computer through the IP address. An IP address may be dynamic or static depending on your computer. But that is a topic for another day.

The relationship between an IP and a domain name

In relation to web hosting, it is important to understand how an IP address works with your domain. Every domain name has a linked IP address. If you own (or have owned) a website, you will know that in addition to buying a domain, you will need to buy a web hosting plan. The hosting is simply a space where people can access your web-files from.

A domain name is usually short and memorable. Sometimes, you will have to carry out a domain search on the registrar’s website for available names. A domain name is used to differentiate one website from another. You can think of a domain name as a nick-name for the real code that is your IP address. Breathe in…now, the IP is a real set of numerical navigational commands that conveys information about the address of your web files in a language that only computers can understand. Normally, this language is too complex for human interpretation. The major thing to note here is that, while domain names are an easy representation for humans, the IP address is the true address of the website.

Now that you know the meaning of IP and its function(s), let us look at how a shared IP differs from an exclusive IP.

Understanding the meaning of a shared IP

Easily enough, a shared IP is an IP address that is used for several sites. It can host all the sites on a web server. Please note that this is different from shared hosting. Since the IP address of a website is used for different sites on the same server, the activities of a site owner can affect every other person on that server.

For instance, if an IP address is blacklisted for illegal activity, it can also cause the blacklisting of all sites with the same IP address. If your business is on a shared IP select, it is important that your provider has strict regulations against such unacceptable practices. One thing you should know, however, is that you will not be able to install an SSL certificate if your site uses a shared IP.

It is possible to host your website on a shared IP without being implicated by a co-owner on the server. If your mail is important to you, it is advisable to use a specific hosting service that will offer you a sophisticated mail server like Google Apps. This is important because if your IP address is blacklisted, you will still be able to operate your email without issues. Google Apps offers a vast storage option for mail, and a more efficient spam and junk filtering service.

Understanding the meaning of an exclusive IP address

As the name suggests, an exclusive IP address is one that is used by only one site. When you have an exclusive IP address, no other site on the server (or anywhere else) uses the same IP address. For example, if you type http://64.233.187.99/ into your browser’s search bar, it will turn up Google’s website. This is their exclusive IP address- no other site has the authority to use it.

Originally, websites started off with unique IP addresses. But when the web system began to run out of IP addresses, people started placing several websites on one IP. Today, many small accounts are hosted this way. Conversely, bigger companies and websites prefer to use the exclusive IP address as it is safer and more effective for their business.

E-commerce businesses prefer to use unique IP addresses. If a site handles payment processing directly, but not through a 3rdparty website such as PayPal, it is essential for them to have an SSL certificates, and therefore must run on an exclusive IP address. Most Ecommerce clients use a unique IP address for their website.

How to buy an exclusive IP address and a private SSL certificate

We have discussed the difference between both types of IP addresses, their pros and demerits. Naturally, as a business with a direct paying platform, you will want a unique (exclusive) IP address. So, here is how you can buy one.

There are two ways to buy an exclusive IP address:

• The first way is via a PayPal shopping cart or a different shopping cart that is hosted by another company off your website. The host provider will still host your site, but if somebody were to pay, they would be re-directed to the company you have chosen to host your shopping cart.
• The second way is by using your current host provider’s SSL (if they have one). This SSL should have all the levels of encryption and security that a private SSL does. Some providers offer this service for free.

The SSL encryption can only be used on websites that have an exclusive IP address. Exclusive IP addresses are also referred to as “dedicated” IP address. Finally, exclusive IP addresses are an essential feature for Ecommerce sites with credit card paying platforms.