A hosting company requires IPs to assign their servers and clients' web sites, which allows for other devices through-out the world to communicate with us. The IPs we use are from Worldcom. Receiving IP address space directly from ARIN (American Registry for Internet Numbers) is extremely difficult and costly, though even if one has the financial resources available, they must meet and adhere to stringent guidelines. When the Internet was formed a restriction was placed on the maximum amount of IPs, at the time it was believed the maximum amount was all which would be needed. For efficiency purposes, all hardware, specifically routers/hubs where programmed to handle that maximum amount. Though, as technology advanced and the Internet became more widespread, available IP address space was in rapid decline. A major upgrade to the core infrastructure (hardware and software) was preformed with the newly capped IP address space implemented. Once again, this cap was believed to be the maximum amount needed. Well, you guessed it, the Internet grew and IP address space became scarce. Today IPv4 (Internet Protocol version 4) is the world's most used version. In North America it is ARIN's role to administer the assignment of IPs with a mandate to prevent waste and misuse (of IP address space). "Why don't they make another version which contains more IPs?" They already have, it is called IPv6, which would allow for millions of new IPs. "Why has IPv6 not been implemented?" One word, cost. The cost to change all the software and hardware in the world is horrendous! Though, slowly but surely companies whom build new devices are programming for both IPv4 and IPv6 compatibility. In the meantime, companies who do not meet ARIN's stringent guidelines, must use IP space from those who have, which are typically Internet Access Providers (IAPs)  . While there are many telephone and cable based IAPs offering Internet Access they do not necessarily have IP address space assigned directly from ARIN. Many just resell Internet Access service using large national IAPs' Internet Connections and IPs. Thus these local companies are heavily dependant on the national companies (who actual receive IP address space from ARIN) to continually meet the ARIN guidelines. Otherwise, if guidelines are not met, IP addresses would be revoked from the national company. One of the guidelines is, the company must be in business, meaning in the event they go bankrupt or close, they lose their IP addresses, which has major repercussions for the local companies using IPs from the national company's ARIN assignment. In every case these smaller companies are NOT permitted to keep or even temporarily use the IP space. Thus, they are left scrambling to find not only a new IAP but also new IP address space. Whether their customers are individuals attempting to access the Internet or individuals whom own a mission critical web site, connectivity is lost. When the company finally does find another IAP and/or IP address space, the people hours required to replace the old IPs in conjunction with the associated costs are damaging enough to ruin any business. Having IP address space is still not enough. For efficiency reasons, Routers / Switches using BGP (Boarder Gateway Protocol) only recognize a specific range of IP address space which allow for multiple IAPs, also known as multihoming. Multihoming (connected with multiple IAPs) dramatically increases the reliability of Internet connectivity. As of this writing and very likely to this day, ARIN does NOT have any address space available within the range which Routers and Switches use to recognize multihomed connections. Therefore, in order to properly multihome, a company is reliant on those whom were assigned IPs within that address range.
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