Alexander Britkin is the CEO of NFWare.
When the IPv4 address pool was depleted in 2011, some of the most impacted companies were internet service providers (ISPs) that needed these IPv4 addresses to grow their businesses. Less impacted, at the time, were web companies whose need for addresses wasn’t growing as quickly and that had large address inventories they could use.
Now, with growth increasing and address reserves dwindling, it’s these companies’ turn to figure out how to keep the dearth of IPv4 addresses from limiting their growth.
The IT attention of web companies is focused on cloud computing, data centers and AI, which means the number of devices on the network is growing. As these companies grapple with the limitations of the internet’s foundational architecture, they’re investing in high-performance carrier-grade network address translation (CGNAT) as a crucial solution.
How We Got Here
The internet was built on a foundation of IPv4 addresses, which were standardized in the 1980s when there was no commercial internet and the closest anyone came was using modems to connect to online bulletin boards. Thus, the decision was made to standardize a 32-bit address space. As the internet grew in popularity, the pool of addresses resulting from that decision was woefully inadequate to handle the explosive growth of connected devices.
This finite pool of addresses has become increasingly scarce as billions of devices—from smartphones to smart appliances to IoT sensors—have come online. For web companies operating at a worldwide scale, the implications are profound. Without a sufficient pool of IP addresses, they face significant hurdles in terms of network capacity, user experience and data security.
IPv6, the successor to IPv4, was designed to solve this problem with a virtually limitless address space. With 340 undecillion (340 followed by 36 zeros) addresses available, it seemed like a panacea.
However, the transition to IPv6 has been slow and fraught with challenges. Compatibility issues, implementation costs and a lack of urgency have hindered widespread adoption. While many web companies have made progress in deploying IPv6, the reality is that IPv4 remains the dominant protocol and the demand for IP addresses continues to outstrip supply.
The scarcity of IPv4 addresses has created a lucrative aftermarket for brokers. These intermediaries facilitate the buying of IPv4 address blocks from the few companies that have a surplus and other organizations where the need is desperate. As the demand for IP addresses has soared, so too have the prices.
Options For Managing IP Addressing
Other than reducing the number of devices on the network, web companies have three options for getting the IPv4 addresses they need for growth.
The first is to move to IPv6, where there are plenty of addresses. For most organizations, this is a long-term play for the reasons stated above.
For some organizations, IPv4 address brokers are a viable, albeit expensive, short-term option. It’s also the option that requires very few changes to the network. However, its long-term viability is unknown as the address supply is dwindling and the cost is increasing.
The third option is CGNAT. It’s a sophisticated form of address translation that allows multiple devices to share a single public IP address. By optimizing the use of available IP addresses, CGNAT enables web companies to connect more devices without overwhelming their network infrastructure. This is particularly critical for web companies that rely on a massive network of drivers, riders, content creators and servers to operate.
CGNAT works by creating private IPv4 addresses for local area networking (LAN) connectivity and automatically translating those addresses into public IPv4 addresses for internet connectivity. CGNAT solutions allow up to 64 users to share one public IPv4 address.
CGNAT was originally deployed as a hardware-software appliance with fixed configurations. More recently, CGNAT providers have followed the virtualization trend in telecommunications, resulting in a high-performance software solution that can be run on commercial-off-the-shelf (COTS) servers. Virtualized CGNAT is better for interweb companies because they have deep experience with managing COTS servers, resulting in lower cost management.
Challenges Surrounding CGNAT
CGNAT can introduce complexities in terms of network management and troubleshooting. Additionally, some applications and services rely on direct IP connectivity, which CGNAT can hinder.
To overcome these obstacles, web companies will need to invest in high-performance infrastructure supporting line-rate CGNAT at the highest throughput available—up to 400 Gbps. Network monitoring and logging tools can help meet compliance, security, transparency and troubleshooting concerns.
As the internet continues to evolve, the demand for IP addresses will only increase. For web companies operating at the forefront of the digital economy, high-performance CGNAT can allow them to build more resilient, secure and scalable networks—ensuring they can continue to meet the demands of a connected world.
CGNAT is a critical tool in the IP address management arsenal of web companies. Just as the ISPs that faced the challenge before them, web companies must navigate the complexities of the digital landscape.
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