Every time your business connects to the internet whether you are checking emails, updating your website, or launching a video call your devices use something called an IP address.
You can think of an IP address as a digital postcode. Just as the Royal Mail needs a postcode to deliver a parcel to your office, the internet needs an IP address to send data to the correct device.
As a small business owner, you might have heard terms like IPv4 and IPv6 thrown around by your internet service provider (ISP) or IT support team. But what do they actually mean, and why should you care?
Here is a straightforward, jargon-free guide to understanding IPv4 and IPv6, and what the transition means for your business.
What is IPv4?
IPv4 stands for Internet Protocol version 4. Launched in the early 1980s, it is the traditional system that has powered the internet for decades.
IPv4 addresses are made up of four groups of numbers separated by periods, for example, 192.168.1.1. Because of its technical mathematical structure, IPv4 can create roughly 4.3 billion unique addresses.
In 1983, 4.3 billion addresses seemed like an infinite amount. However, the creators could not have predicted the explosion of the smartphone, smart TVs, tablets, and the thousands of connected devices that modern UK businesses rely on today.
What is IPv6?
IPv6 stands for Internet Protocol version 6. (Version 5 was an experimental project that was never widely deployed). IPv6 was created for one primary reason: the world ran out of IPv4 addresses.
Instead of just numbers, IPv6 addresses use a combination of numbers and letters separated by colons for example, 2001:0db8:85a3:0000:0000:8a2e:0370:7334.
Because IPv6 uses a much longer and more complex structure, it can generate an unfathomable number of unique addresses specifically, 340 undecillion (that is a 340 followed by 36 zeros). This is more than enough to give every single grain of sand on Earth its own unique IP address, ensuring the internet can keep growing for generations to come.
IPv4 vs IPv6: A Quick Comparison
| Feature | IPv4 | IPv6 |
| Address Format | Numerical (e.g., 192.168.1.1) | Alphanumeric (e.g., 2001:0db8…) |
| Address Pool | ~4.3 billion (Exhausted) | ~340 undecillion (Virtually infinite) |
| Security | Dependent on external add-ons | Built-in security features (IPsec) |
| Speed & Efficiency | Slower routing, relies on NAT | Faster routing, more efficient data handling |
Why This Matters to Your Small Business
You might be wondering, “If it works, why should I change anything?” While you do not need to become an IT expert overnight, there are a few reasons why the shift to IPv6 matters to your bottom line:
- Future-Proofing Your Operations
As IPv4 addresses become scarcer, they also become more expensive to buy and lease. Many major UK telecoms providers and web hosting companies are actively transitioning to IPv6. Ensuring your business technology supports IPv6 means you will not face connectivity or compatibility issues as older systems are phased out.
- Enhanced Security
IPv6 was built with modern security in mind. It includes built-in encryption and authentication protocols (known as IPsec). While it does not replace the need for a good firewall and antivirus software, it makes internet traffic inherently more secure than old IPv4 networks.
- Better Performance and Efficiency
IPv4 networks rely heavily on a technology called Network Address Translation (NAT) to share a single public IP address among multiple devices in your office. IPv6 eliminates the need for NAT. This allows data to travel more efficiently, reducing lag and improving speeds for cloud applications, VoIP phone calls, and online customer interactions.
What Do You Need to Do?
The good news is that you do not need to panic. The internet will not suddenly switch off for IPv4 devices. Most modern networks use a method called “Dual Stack”, which allows IPv4 and IPv6 to run side-by-side at the same time.
However, to ensure your business remains ahead of the curve, here are three simple steps to take:
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- Check your hardware: When buying new office routers, network switches, or smart devices, check the specifications to ensure they are IPv6 ready or IPv6 compatible.
- Speak with your ISP: The next time you review your business broadband contract, ask your provider if they supply native IPv6 addresses. Major UK providers are already rolling this out.
- Ask your web host: Ensure your company website is accessible via IPv6. If your website only supports IPv4, users on newer, IPv6-only networks might experience slower loading times when trying to find your business.
By understanding the shift from IPv4 to IPv6, you can make smarter decisions about your IT infrastructure, protect your data, and ensure your business remains seamlessly connected to your customers.
