To truly understand dedicated IPs we need to understand how IP addresses work.
IP addresses route internet traffic to the right place, much like a zip code or post code. Like postal codes, different people can share the same IP.
If you have a shared hosting account, you probably share your site IP address with dozens of other people. In some cases, you might share it with hundreds of other sites. Sharing is not a problem. The host has software to interpret requests for different sites on the same IP, ensuring that it can serve the right content to each person, and it takes milliseconds.
A dedicated IP address is exclusively yours. You might choose to serve different sites from that IP address, but you’re ultimately in control of who’s using it.
Benefits of having a dedicated IP address
Generally, having a website on a shared IP address will not cause you any harm. However, there are a few cases when a static IP is required...
● Having your own Private SSL Certificate. Secure e-commerce websites need SSL certificates for accepting credit cards online. Web hosts usually offer a shared SSL certificate where clients can share the Web host's SSL. If you are using your Web hosting provider's shared SSL you don't need a static IP.
● Anonymous FTP. It means that anyone using the FTP software can access files in a special directory of your site. It's called Anonymous FTP because the user name used to access is "anonymous." Many Web hosting providers require a static IP for the anonymous FTP function to work properly.
● You want to access your website by FTP or Web browser even when the domain name is inaccessible, such as domain name propagation periods.