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Microsoft spends $7.5m on IP addresses

theregister.co.uk

21–30 of 44 posts

Re: Microsoft spends $7.5m on IP addresses

#21

This is artificial scarcity for you. Numbers. They're paying millions of dollars for a set of numbers.

This sounds clever but actually bespeaks a lack of understanding what an IP address is. Microsoft didn't buy a "set of numbers"; they bought the rights, previously secured by another company, to insert prefixes into hundreds of thousands of routers operated (at galactic levels of expense) by hundreds of companies around the world.

Re: Microsoft spends $7.5m on IP addresses

#22
post #7
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?

ARIN has 5.7 /8 equivalents, or 95M addresses available. Their policy is (roughly) to satisfy any requests where the addresses will actually be used in the near future ("50% utilization rate within one year").

http://www.potaroo.net/tools/ipv4/index.html https://www.arin.net/resources/request/ipv4_depletion.html https://www.arin.net/policy/nrpm.html#four

Re: Microsoft spends $7.5m on IP addresses

#27
post #15

One company sold an asset to another company, and kept normal records of the sale. I don't consider that the "black market." It's just the natural secondary market. (Yes, I'm only making a semantic distinction, but I think it's misleading to use the same term to refer to, say, the cocaine economy and the above-board sale of IP addresses.)

I think the implied point in the article is that in this case Microsoft and Nortel had to disclose the sale details, but in most other circumstances, the would not have done that. It seems that the author implies that this sale is an indication that a black market is forming, not that this was a black market transaction.

The sale was a part of the normal economy. One company paid another company for something, and the sale was recorded in their books. The "something" is not illegal. The term "black market" is usually reserved for transactions that happen outside of the regular economy, usually because they are illegal.

Re: Microsoft spends $7.5m on IP addresses

#28
post #27

Earlier quoted context omitted.

I think the implied point in the article is that in this case Microsoft and Nortel had to disclose the sale details, but in most other circumstances, the would not have done that. It seems that the author implies that this sale is an indication that a black market is forming, not that this was a black market transaction.

The sale was a part of the normal economy. One company paid another company for something, and the sale was recorded in their books. The "something" is not illegal. The term "black market" is usually reserved for transactions that happen outside of the regular economy, usually because they are illegal.

The powers that be have been saying for about 20 years that IP addresses are not assets, cannot be owned, and cannot be sold. That's why people are talking about black markets.

Re: Microsoft spends $7.5m on IP addresses

#29
So, $7.5 million for 666,624 IP addresses. Now the question is, how much is the 16,777,214 IP addresses that Apple owns worth? (Apple owns the entire 17.0.0.0 Class A subnet) Was this factored into Apple's valuation?

I would love to hear the story behind how Apple got the 17.0.0.0 subnet.

Re: Microsoft spends $7.5m on IP addresses

#30
post #21

This is artificial scarcity for you. Numbers. They're paying millions of dollars for a set of numbers.

This sounds clever but actually bespeaks a lack of understanding what an IP address is. Microsoft didn't buy a "set of numbers"; they bought the rights, previously secured by another company, to insert prefixes into hundreds of thousands of routers operated (at galactic levels of expense) by hundreds of companies around the world.

So they're paying for the rights for other people to access their systems via a set of numbers. And how is that not making arbitrary numbers artificially scarce and collecting payment for them?

IPV6 really can't come soon enough.

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