IP, expandable to internet protocol, is an address through which a website is identified on the internet. With an IP, a computer can interact with the other computer machines in the network. The address is meant to specify the source and location from where an information is generated and where the information is delivered.
The IP address can be in two ways. One is the dedicated IP also called static or fixed IP and the second is the shared IP or dynamic IP. In the latter case, one common IP address is shared among several websites. The web hosting providers generally offer one common IP address in their shared hosting plans. It has its own limitations. With the number of internet users increasing rapidly, web hosting providers find it more convenient to use shared IP.
Unique exclusively for one user:
The
dedicated IP as the name suggests is dedicated to one single website. One significant benefit is retaining your identity. Anybody typing the IP or your URL will be directed to the same domain. It saves you from being involved in a shared address.
Eliminates risks of being banned on a shared platform:
The internet can be misused in many ways one of which is by sending spam messages. The Internet service providers blacklist the IP address that indulges in such activities. In case the spammer is on the same server as you in a shared platform sharing a common IP, your business too will go offline since the IP is blocked. This will have a negative impact on your business and you could lose valuable customers. You can buy a dedicated IP and continue shared hosting. This problem does not arise in VPS (virtual private servers) although you share the server with others. In VPS each of you are assigned unique IP addresses.
For an SSL certificate:
You must have an exclusively dedicated IP address, in case your business processes secure transactions. It is a must to have an SSL (Secure Socket Layer) certificate for accepting payments online from your customers. An
SSL certificate cannot be issued if you are on a shared IP. Your visitors will trust your site when you have the SSL and they willingly will part with their credit card details when buying a service from you.
Run an FTP server:
You may be running FTP to transfer data from one system to another. You will require a few software to be installed which will enable you to share files, pictures, and other information with your friends or relatives.
Remote access:
A static IP will enable you to work on your PC from anywhere. There are certain tools like the Remote Administrator / PC Anywhere which will allow you to login from your home/ office PC. A fixed address will sync the program with your computer whenever you require.
If you are running a gaming server or a chat room you need a static IP or you may face some downtime each time there is a reboot. The downtime can be minimal but can create an interruption to the game or chat and affect the performance.
There are many people who are under the impression that a dedicated IP will have a role in the Google ranking or help in SEO. They think that is one reason why shared hosting may yield you lower rank. This is not exactly true. The page load speed is one of the factors that Google considers for SEO ranking but the speed could vary for several other reasons. It only secures you from being banned for no fault of yours as detailed earlier.