IPv4 vs IPv6 Explained: What's the Difference and Why Should Your Business Care?
The internet has become an essential part of every modern business, but many organisations still don't understand one of the technologies that makes it all possible: IP addresses.
You may have heard terms such as IPv4 and IPv6, particularly when ordering connectivity services or configuring networks. While they sound highly technical, understanding the basics can help businesses make better long-term technology decisions.
In this guide, we'll explain the differences between IPv4 and IPv6 in plain English, why the industry is moving towards IPv6, and what it means for your customers.
First Things First – What Is an IP Address?
Every device connected to a network needs a unique identifier so that information knows where to go. This identifier is called an Internet Protocol (IP) address.
Think of it like a postal address.
Just as a letter needs the correct address to reach a home or business, internet traffic needs an IP address to reach a computer, server, router or smartphone.
Without IP addresses, the internet simply wouldn't work.
What Is IPv4?
IPv4 (Internet Protocol Version 4) has been the backbone of the internet since the early 1980s.
An IPv4 address looks something like this:
194.0.58.10
It consists of four numbers separated by dots, with each number ranging from 0 to 255.
IPv4 provides approximately 4.3 billion unique addresses.
That sounded enormous when the protocol was created.
However, nobody anticipated:
- Smartphones
- Tablets
- Smart TVs
- CCTV systems
- IoT devices
- Cloud computing
- Connected vehicles
- Smart buildings
Today, billions more devices require internet connectivity than IPv4 was ever designed to support.
Why Are IPv4 Addresses Running Out?
Although 4.3 billion addresses sounds like a huge number, many are reserved for private networking, testing or special purposes.
The pool of publicly available IPv4 addresses has effectively been exhausted.
As a result:
- Organisations often have to purchase IPv4 addresses from other companies.
- Public IPv4 addresses have become increasingly valuable.
- Internet Service Providers use technologies such as Network Address Translation (NAT) to allow multiple devices to share one public address.
While NAT works well in many situations, it also adds complexity to network design.
What Is IPv6?
IPv6 (Internet Protocol Version 6) was developed to solve the limitations of IPv4.
An IPv6 address looks quite different:
2001:0db8:85a3:0000:0000:8a2e:0370:7334
Although it appears intimidating, the important point is that IPv6 offers an almost limitless supply of addresses.
Instead of billions, IPv6 supports approximately:
340 undecillion addresses
That's:
340,282,366,920,938,463,463,374,607,431,768,211,456
In practical terms, that's enough unique addresses for every connected device anyone is ever likely to invent.
IPv4 vs IPv6 at a Glance
|
Feature |
IPv4 |
IPv6 |
|
Introduced |
1981 |
1998 |
|
Address Length |
32-bit |
128-bit |
|
Number of Addresses |
Around 4.3 billion |
Virtually unlimited |
|
Address Format |
192.168.1.1 |
2001:db8::1 |
|
NAT Required |
Often |
Usually unnecessary |
|
Security |
Optional |
Designed with modern security in mind |
|
Network Efficiency |
Good |
Improved routing and efficiency |
|
Future Ready |
Limited |
Yes |
Why Should Businesses Care?
Many organisations assume this is purely an ISP issue.
In reality, IPv6 is becoming increasingly important for businesses planning long-term digital growth.
Future-Proof Your Network
As more connected devices join business networks, IPv6 provides the scalability required for future expansion.
This is particularly important for organisations adopting:
- AI-powered applications
- Internet of Things (IoT)
- Smart manufacturing
- CCTV deployments
- Remote working
- Cloud-first infrastructure
Improved Network Efficiency
IPv6 simplifies routing by removing many of the workarounds required by IPv4.
This can make networks easier to manage and improve performance across large environments.
Better End-to-End Connectivity
Because IPv4 relies heavily on NAT, establishing direct device-to-device communication can sometimes be more complex.
IPv6 allows devices to communicate more directly, making technologies such as VoIP, video conferencing and peer-to-peer applications easier to support.
Built for the Future
Most modern operating systems, networking equipment and cloud platforms already support IPv6.
Increasingly, organisations are deploying dual-stack environments where IPv4 and IPv6 run alongside one another during the transition.
Will IPv4 Disappear?
No.
IPv4 isn't disappearing anytime soon.
In reality, the internet will continue using both protocols for many years.
Most ISPs, hosting providers and enterprise networks operate dual-stack services, meaning both IPv4 and IPv6 work simultaneously.
This allows organisations to transition gradually without disrupting existing applications.
Does Every Business Need IPv6 Today?
Not necessarily.
Many businesses can continue operating perfectly well using IPv4.
However, organisations should begin considering IPv6 if they are:
- Deploying new infrastructure
- Expanding cloud environments
- Supporting large numbers of connected devices
- Building new business applications
- Planning long-term digital transformation
For IT resellers and MSPs, understanding IPv6 is becoming an increasingly valuable skill when advising customers.
How VeloxServ Helps Partners
Whether your customers require broadband, Ethernet, dedicated internet access or colocation services, understanding the underlying networking technologies helps deliver the right solution.
At VeloxServ, we work with our reseller, ISP and MSP partners to simplify connectivity.
We operate our own network, AS3170, which is fully “dual stack” meaning we support both IPv4 and IPv6. With VeloxServ, every connection a partner orders is given a static, publically routable IPv4 address, and unlike some operators, we do not use CG-NAT.
We also provide IPv6 as standard with all of our connectivity solutions.
Our experienced team can advise on network architecture, connectivity options and future-ready infrastructure across our portfolio of leading UK network providers.
As businesses continue modernising their IT environments, having a knowledgeable wholesale partner helps ensure your customers receive solutions that are built not just for today's requirements, but for tomorrow's growth as well.
Key Takeaways
IPv4 has served the internet for over 40 years, but the explosive growth in connected devices means its available address space has effectively been exhausted.
IPv6 was designed to overcome this limitation, offering virtually unlimited addresses, improved efficiency and the scalability required for the next generation of digital services.
While IPv4 will remain with us for many years, understanding IPv6 today helps businesses, MSPs and connectivity partners prepare for the future.
Whether you're advising customers on broadband, Ethernet, dedicated internet access or colocation, knowing the difference between IPv4 and IPv6 is another step towards delivering smarter, more resilient networks.
Want to Learn More?
If you'd like to discuss connectivity solutions, dedicated internet access, Ethernet services or resilient network infrastructure for your customers, speak to the VeloxServ team today. We're here to help our partners navigate both today's networking challenges and tomorrow's opportunities.
