September 12, 2022

Pros and Cons of Shared and Dedicated IP

The business world has gone through significant changes in the last few years, and as a result of the coronavirus outbreak, companies started to adopt remote work models.

Also, the expanding usage of cloud-based technologies led companies to change their approach to cyber security.

Pros and Cons of Shared and Dedicated IP: eAskme
Pros and Cons of Shared and Dedicated IP: eAskme

Adopting certain remote access policies and embracing network security approaches play a significant role in today's business world.

So, companies must shift from traditional perimeter security to more modern cyber security solutions.

Some measures, such as Dedicated and Shared IP utilization, are great starting points. Both have distinct advantages and disadvantages.

However, they can be highly beneficial when utilized properly. In this article, we will take a look at how both IP addresses work and their benefits and drawbacks.

Let's start with the definition of these terms and continue with the pros and cons.

Shared IP and Dedicated IP:

This section of the article will cover how these IP addresses work.

Understanding how they work is essential because it plays a critical role in deciding which one is more appropriate for your business.

Using a different IP address instead of the one appointed to your endpoints by your Internet Service Provider may enhance your network security significantly.

However, as mentioned above, the first step should be to grasp their work mechanism.

What is a Dedicated IP?

A dedicated IP address, in short, is a personalized address that is appointed to a specific endpoint or corporate. This means that the user can only use the specified address.

The distinctiveness feature can enhance businesses' network security, especially those with remote employees.

The reason behind that is that this particular type of IP address allows users to access the desired network through a specialized address.

Companies can also guarantee that the provided address is not used by third parties so that the actions of other users do not influence the company's image.

Moreover, using a dedicated IP address VPN, businesses can restrict access to highly classified and other corporate documentation to those with access to the business network.

Finally, since some networks can only be accessed via separate IP addresses for particular security reasons, dedicated IP may come in handy.

What is Shared IP?

A shared IP address, as the name implies, is an IP address that a group of endpoints uses.

A cost-efficient solution makes this type a great choice for newly established companies and businesses.

All traffic flow from users is routed through the same server using a shared IP address.

Even though the main reason behind using this IP is its efficiency, it also has other features that may, sometimes, be highly beneficial for companies.

For example, a shared IP address is also a common option for sending email marketing.

Sharing the same address with other users enhances privacy since it is hard to track by third parties like Internet Service Providers.

However, if you are worried about the reputation of your IP address, consider using dedicated IP instead since the actions of others are not guaranteed to have a positive effect.

Still, newly established companies may take advantage of existing IP addresses' reputations when using shared ones.

Dedicated IP Address: Pros and Cons:

The most important benefit of dedicated IP is that it eliminates the risk of IP blocklisting, which is banned from accessing specific websites because of misuse or malicious actions.

So, since you are the only user of the IP appointed to you, your IP should stay safe and secure as long as you do not take hazardous actions.

But, of course, the same benefit applied to other IP-related blacklistings.

Another advantage of having a dedicated IP address is that reputable mail services other than shared IPs trust emails sent from those addresses.

That is because emails from shared IPs should undergo a background check by email services.

Therefore, dedicated IPs provide you with a better and faster email experience.

However, there are some downsides to using a dedicated IP.

The first disadvantage is that dedicated IPs cost relatively higher than other IP services.

In contrast to different IP address types, dedicated IP rarely comes free as a VPN service.

The other disadvantage that is worth mentioning is reduced anonymity.

Websites can link your actions to your IP address when you use dedicated IP.

This means your online activity may be tracked to you by third parties or your internet service provider.

Shared IP Address: Pros and Cons:

The first advantage that comes to mind when talking about shared IP is the cost.

Shared IP is a cost-efficient solution for new firms that want to take advantage of the existing reputation of the users that share the same IP.

Another significant advantage of this type is that they generally use shared hosting, which means companies can use pre-existing services and apps with a single click.

Also, since different users handle IP health, the trust in IP used may be enhanced significantly, which can be highly beneficial for small businesses.

Unlike dedicated IP, this type enhances privacy since it doesn't show the exact location of your endpoints.

Shared IP also helps users to easily keep a consistent volume with Internet Service Providers by using previously defined volume.

However, some of these advantages turn into disadvantages. For example, others' actions may affect your IP positively and negatively.

These actions also influence the emails you send. Since email services do a background check on IP addresses, sending an email from shared IP may end up in a spam box.

So, the most important thing is IP reputation when using shared IP because it is the main factor in whether it will be beneficial.


In the modern business world, secure remote access plays a significant role.

Since the number of remote employees is increasing and companies are adopting cloud-based technologies, changing traditional approaches and taking steps accordingly is essential.

Of the two types, deciding which one you should use completely depends on your needs.

For example, sharing IP is better for you if you are looking for enhanced privacy or an already established reputable IP.

On the other hand, if you want faster and better email services and secure remote connections, dedicated IP may be the best choice for your business.

Furthermore, these IP types help you enhance your business's overall cyber security by encrypting your online activity.

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