Urgency for Address Conservation: AWS's New Charge for Public IPv4 Addresses

Introduction

IPv6 has been around for over two decades, offering a larger pool of unique IP addresses and better support for modern network technologies. However, the transition to IPv6 needs to be faster due to the significant changes in network infrastructure and investment in training and education. But with the growing number of connected devices and the scarcity of IPv4 addresses, the need for IPv6 adoption is becoming more pressing.

On 28th July 2023, Amazon Web Services (AWS) announced that it would introduce a new charge for public IPv4 addresses from 1st February 2024 - just a 21 days from the time of writing! This change further emphasises the urgency of IPv6 adoption.

Internet Protocol version 4

Description

IPv4, or Internet Protocol version 4 (RCF791 ), is the fourth revision of the Internet Protocol (IP) and the most widely used protocol for connecting devices to the Internet. It was developed in the 1980s and has been the backbone of the Internet for many years.

IPv4 uses a 32-bit address format, which provides approximately 4.3 billion unique IP addresses. However, the number of available IP addresses is running out due to the explosive growth of the Internet and the increasing number of connected devices. This is known as the IPv4 address exhaustion problem.

Despite its limitations, IPv4 remains widely used because it is simple and easy to understand. It is also compatible with virtually all internet-connected devices and can be used in many different types of networks, including LANs, WANs, and the Internet.

One of the key features of IPv4 is its ability to provide end-to-end connectivity between devices on the Internet. This means that data can be sent from one device to another across different networks and through different routers and switches without being lost or corrupted.

IPv4 also supports a range of key network functions, including routing, fragmentation, and error checking. It also supports Quality of Service (QoS) functions, which enable network administrators to prioritise traffic based on specific criteria like bandwidth, latency, and packet loss.

The Problem

The limitations of IPv4 have become increasingly apparent. Here are some of the main problems with IPv4.

• IPv4 Address Exhaustion.?One of the biggest problems with IPv4 is the limited number of available IP addresses. IPv4 uses a 32-bit address format, which provides approximately 4.3 billion unique IP addresses. However, with the increasing number of devices connected to the Internet, the number of available IP addresses needs to be higher. This is known as the IPv4 address exhaustion problem.
• NAT (Network Address Translation) Overload.?To address the IPv4 address exhaustion problem, many organisations use NAT, which allows multiple devices to share a single public IP address. However, this can cause network performance and security issues, as NAT can lead to network congestion and make it difficult to track and manage network traffic.
• Security Vulnerabilities.?IPv4 was not designed with security in mind and lacks built-in security features. This can make it vulnerable to various cyberattacks, including IP spoofing, denial-of-service attacks, and man-in-the-middle attacks.
• Quality of Service (QoS) Limitations.?IPv4 provides limited support for Quality of Service (QoS) functions, making prioritising network traffic and ensuring optimal performance challenging. This can lead to problems with network congestion and poor network performance.
• Incompatibility with New Technologies.?IPv4 lacks support for many new technologies emerging in the modern Internet, such as the Internet of Things (IoT), which is expected to connect billions of devices to the Internet in the coming years. IPv4 is also incompatible with IPv6, which is the latest version of the Internet Protocol.

To address these problems, the Internet is gradually transitioning to IPv6, which provides a much larger pool of unique IP addresses and better support for modern network technologies. However, this transition will take many years, and IPv4 will continue to be used for many years to come.

Internet Protocol version 6

Description

IPv6, or Internet Protocol version 6 (RFC 2460 ), is the latest Internet Protocol (IP) version designed to replace the older IPv4. It was created to address the limitations of IPv4, which was running out of available IP addresses due to the explosive growth of the Internet and the increasing number of connected devices.

IPv6 uses a 128-bit address format, which provides a much larger pool of unique IP addresses than the 32-bit address format of IPv4.

One of the key features of IPv6 is its ability to auto-configure network addresses, which simplifies network administration and reduces the likelihood of errors. It also supports better security features, including IPsec, which is built into the protocol and provides secure communication between devices.

Another important feature of IPv6 is its support for Quality of Service (QoS) functions, which enable network administrators to prioritise traffic based on specific criteria like bandwidth, latency, and packet loss. This helps to optimise network performance and reduce congestion.

In addition, IPv6 provides better support for mobile networks and devices, which have become increasingly important in today's connected world. It also supports new technologies like the Internet of Things (IoT), which is expected to connect billions of devices to the Internet in the coming years.

Overall, IPv6 is a more advanced and efficient protocol than IPv4 and has become increasingly important as the Internet continues to grow and evolve. As more devices are connected to the Internet, the need for unique IP addresses will continue to increase, and IPv6 will play a critical role in ensuring the continued growth and success of the Internet.

The Solution

IPv6 was designed to address the limitations of IPv4. Here are some of how IPv6 is better than IPv4.

IPv6 has enough capacity to assign an IP address to every atom on the earth's surface.

• Larger Address Space.?IPv6 uses a 128-bit address format, which provides a much larger pool of unique IP addresses than the 32-bit address format of IPv4. IPv6 can provide approximately 340 undecillion unique IP addresses, enough to assign an IP address to every atom on the earth's surface. This eliminates the problem of address exhaustion that is affecting IPv4.
• Automatic Address Configuration. IPv6 supports automatic address configuration, simplifying network administration and reducing the likelihood of errors. This feature allows devices to configure their network addresses without requiring manual configuration or the need for a DHCP server.
• Built-in Security Features.?IPv6 includes built-in security features, including IPsec, which provides secure communication between devices. This can help to protect against a range of cyberattacks, including IP spoofing, denial-of-service attacks, and man-in-the-middle attacks.
• Quality of Service (QoS) Support.?IPv6 provides better support for Quality of Service (QoS) functions, which enable network administrators to prioritise traffic based on specific criteria like bandwidth, latency, and packet loss. This helps to optimise network performance and reduce congestion.
• Mobile Network Support.?IPv6 provides better support for mobile networks and devices, which have become increasingly important in today's connected world. This helps to ensure that devices can connect to the Internet and communicate with each other more efficiently.
• Compatibility with New Technologies.?IPv6 is compatible with many new technologies emerging in the modern Internet, such as the Internet of Things (IoT), which is expected to connect billions of devices to the Internet in the coming years. IPv6 is also compatible with IPv4, which means that devices that support IPv6 can communicate with devices that support IPv4.

Overall, IPv6 is a more advanced, secure and efficient protocol than IPv4 and has become increasingly important as the Internet continues to grow and evolve. As more devices are connected to the Internet, the need for unique IP addresses will continue to increase, and IPv6 will play a critical role in ensuring the continued growth and success of the Internet.

AWS Charge

Announcement

AWS is one of the world's largest cloud computing platforms and provides a wide range of services to customers around the globe. As such where AWS leads you can bet that the other hyperscalers will follow.

One way AWS implements IPv6 is by enabling dual-stack support on its services. Dual-stack support means that AWS services can support both IPv4 and IPv6 simultaneously. This allows customers to use either protocol to access AWS services, depending on their network configuration and preferences. For example, if a customer's network is IPv6-only, they can still access AWS services without using IPv4.

AWS has also updated its services to support IPv6-only VPCs (Virtual Private Clouds). This means that customers can create VPCs that use only IPv6 addresses without using IPv4. This can be useful for customers transitioning to IPv6 and wanting to take advantage of its benefits without needing to maintain legacy IPv4 infrastructure.

The impact of AWS's implementation of IPv6 on its customers depends on their specific network configurations and requirements. For customers already using IPv6, the availability of dual-stack support and IPv6-only VPCs can make integrating AWS services into their networks easier. It can also provide better performance and security for their applications and services.

For customers still using IPv4, dual-stack support availability means they can still access AWS services without needing to transition to IPv6 immediately. However, as the adoption of IPv6 continues to grow, customers may need to consider transitioning to IPv6 to take advantage of its benefits and ensure compatibility with emerging technologies.

Overall, AWS's implementation of IPv6 is an essential step towards the continued growth and evolution of the Internet. By providing support for both IPv4 and IPv6, AWS is helping to ensure that its customers can continue to access its services regardless of their network configurations while also providing a path for customers to transition to IPv6 in the future.

Impact

IPv4 addresses are an increasingly scarce resource, and the cost to acquire a single public IPv4 address has risen more than 300% over the past five years. This change reflects AWS's prices, so it is encouraging customers to be more frugal with their public IPv4 addresses and to think about accelerating their adoption of IPv6 as a modernisation and conservation measure.

This change applies to all AWS services, including Amazon Elastic Compute Cloud (Amazon EC2), Amazon Relational Database Service (RDS) database instances, Amazon Elastic Kubernetes Service (EKS) nodes, and other AWS services that can have a public IPv4 address allocated and attached, in all AWS regions (commercial, AWS China, and GovCloud).?

In all cases, the rise is a nominal $0.005 per instance per hour. See?here ?for further details.

Insight from early analysis of modest enterprise AWS estates is that the impact of additional costs is low, in the $100s/month range. NOTE: every estates mile will vary. So it should be no show-stopper to most. However, every organisation should manage the risk and strive to reduce the number of public IPv4 addresses provisioned, whether in use or not in use. Conservation is, after all, the intent of the AWS change.

Summary

This blog discusses the limitations of IPv4, the advantages of IPv6, and the challenges faced in transitioning to IPv6. It also explores AWS's implementation of IPv6, including dual-stack support and IPv6-only VPCs, and the impact of its new charge for public IPv4 addresses.

The article highlights the importance of conservation and the need for organisations to manage the risk by reducing the number of public IPv4 addresses provisioned.

About Me

As an experienced AWS Ambassador and Technical Practice Lead, I have a substantial history of delivering innovative cloud solutions and driving technical excellence in dynamic organisations.

With deep expertise in Amazon Web Services (AWS) and Microsoft Azure, I am well-equipped to enable successful design and deployment.

My extensive knowledge covers various aspects of cloud, the Internet, security technologies, and heterogeneous systems such as Windows, Unix, virtualisation, application and systems management, networking, and automation.

I am passionate about promoting innovative technology, sustainability, best practices, concise operational processes, and quality documentation.

Note: These views are those of the author and do not necessarily reflect the official policy or position of any other agency, organisation, employer or company mentioned within the article.