Microsoft spends $7.5m on IP addresses

Zirro wrote: post #5

There's something missing in this article. Why do Microsoft need all these IP-adresses? I'm sure someone here can give me a clever answer.

I'm guessing it's related to their cloud offering. The ability to have a big pool of IP addresses that they can offer to people using their cloud means they don't have to ration them quite as strictly. Amazon already limits you in the amount of elastic IPs that you get out of the box (you can request more http://aws.amazon.com/contact-us/eip_limit_request/ but you need to fill out a form). As things get more scarce, this could become a much bigger issue. Microsoft is hoarding early so that when things really get tight, their users don't have the same pressure.

Re: Microsoft spends $7.5m on IP addresses

#7

Post by dpark » Tue, Nov 15, 2011, 7:23 PM UTC

wmf wrote: post #3

From March. It is a little curious that MS is buying something that ARIN is giving away for free.

Microsoft bought 666K addresses. How many addresses does ARIN even have now, and how likely are they to assign such a large block to a single entity at this point?

Re: Microsoft spends $7.5m on IP addresses

#8

Post by kia » Tue, Nov 15, 2011, 7:23 PM UTC

I think strategically it's a wise move. For MS 7.5m is a small sum. In case IPv6 will not be deployed at the speed we all want their investment will pay off tenfold because IPv4 addresses will be gold. They try to hedge the address exhaustion risk.

Re: Microsoft spends $7.5m on IP addresses

#9

Post by brador » Tue, Nov 15, 2011, 7:29 PM UTC

How does one go about acquiring IPV4 addresses as an investment? Thoughts on viability of ROI?

Re: Microsoft spends $7.5m on IP addresses

#10

Post by huskyr » Tue, Nov 15, 2011, 7:29 PM UTC

Why is this on the front page of Hacker news when the article is from march?