IPv4 Taxation by AWS in 2024: Financial Impacts and Strategies to Minimize Costs

Question

I would like to ask you to help me understand the financial impact of AWS's recent move to tax IPv4 usage from 2024. How will this influence the monthly cost after the implementation of this new charge? I am looking for insights and analysis on this specific scenario. Thank you in advance for any information or opinions shared.

Also, it's important to note that the public IPs in question are in accounts within the AWS Organization. For the IPs that need to exist, is there any way we can minimize this cost? Or is it something we'll have to absorb?

Answer

Recommend going through this blog:

https://aws.amazon.com/blogs/networking-and-content-delivery/identify-and-optimize-public-ipv4-address-usage-on-aws/

Answer

Hi, 
Since AWS has not traditionally charged specifically for the use of IPv4 addresses (beyond the costs associated with services that use these IPs), this change will have financial implications for AWS customers, particularly those with extensive use of public IPv4 addresses. The most immediate impact will be the direct cost associated with the usage of IPv4 addresses. Depending on the pricing structure AWS adopts, organizations with a large number of public IPv4 addresses could see a notable increase in their monthly AWS bills. The cost will likely be determined by the number of public IPv4 addresses allocated and not released back to AWS.

**Minimizing Costs**:
1. Audit and Release Unused IPs
2. Leverage Private IPs and VPCs
3. Adopt IPv6
4. Optimize Architecture

https://aws.amazon.com/blogs/aws/new-aws-public-ipv4-address-charge-public-ip-insights/

Hope this helps.

IPv4 Taxation by AWS in 2024: Financial Impacts and Strategies to Minimize Costs

Relevant content