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Unit 4: Computer Networks

IP Addressing: IPv4 and IPv6

ICT 110: IT for Business

Today's Agenda

By the end of this lecture, you will understand how IP addressing is a fundamental business tool, not just a technical detail.
  • ✅ Understand the role of IP addresses in connecting business assets.
  • ✅ Differentiate between IPv4 and IPv6 and their impact on business strategy.
  • ✅ Analyze how different IP address types support various business functions (Finance, HR, Operations).
  • ✅ Recognize the importance of IP addresses in securing corporate data.

What is an IP Address? 📍

An Internet Protocol (IP) Address is a unique numerical label assigned to each device connected to a computer network that uses the Internet Protocol for communication.

Think of it as a Business Address

Just like your office has a unique street address for mail and visitors, every device in your business network (PC, server, printer, smartphone) needs a unique IP address to send and receive data.

Why IP Addresses Matter in Business 💼

IP addresses are the foundation for nearly all modern business operations.

⚙️ Operations

Track inventory with IoT sensors, manage supply chain devices, and connect factory machinery.

💰 Finance

Ensure secure connections for online banking, accounting software, and payment processing terminals.

🤝 Human Resources

Enable remote work access, manage payroll systems, and track attendance on biometric devices.

The Workhorse: IPv4

The original addressing system, still widely used today.

IPv4 (Internet Protocol version 4) uses a 32-bit address, allowing for approximately 4.3 billion unique addresses.

Example: 192.168.1.10

  • Structure: Four blocks of numbers (octets), separated by dots.
  • Range: Each block can range from 0 to 255.
  • Business Use: The IP address for a specific accountant's computer, a marketing team's shared printer, or a point-of-sale machine.

The IPv4 Problem: Digital Real Estate is Running Out!

Problem: 4.3 billion addresses are not enough for the billions of devices now connected to the internet.

The Business Impact of IPv4 Exhaustion 📉

  • Limits Growth: A growing business (like a retail chain adding new stores) may struggle to get new public IP addresses.
  • Hinders Innovation: Limits the expansion of the Internet of Things (IoT) in operations and supply chain management.
  • Increases Complexity: Requires complex and sometimes inefficient workarounds like Network Address Translation (NAT).

The Solution: IPv6 - The Future of Connectivity ⚡

IPv6 (Internet Protocol version 6) uses a 128-bit address, providing a virtually inexhaustible number of addresses (340 undecillion!).

Example: 2001:0db8:85a3:0000:0000:8a2e:0370:7334

  • Structure: Eight groups of four hexadecimal digits, separated by colons.
  • Business Advantage: Future-proofs your business. Allows every device, from a CEO's laptop to a tiny sensor on a shipping container, to have its own unique public IP address.

IPv4 vs. IPv6: A Business Comparison

IPv4

  • Address Space: Limited (~4.3 Billion)
  • Format: Dotted Decimal (e.g., 172.16.254.1)
  • Business Reality: Legacy standard, still dominant but requires workarounds (NAT). Good for simple, existing networks.
  • Security: Optional features, added on later.

IPv6

  • Address Space: Virtually Unlimited
  • Format: Hexadecimal (e.g., 2001:db8::1)
  • Business Reality: The future standard. Essential for IoT, large-scale growth, and direct device communication.
  • Security: IPsec protocol support is built-in, offering stronger, end-to-end security.

Public vs. Private IPs: Your Digital Office 🏢

🔍 Public IP

Your company's main, internet-facing address. Like your building's street address.

Use Case: Hosting the company website, email server, or VPN gateway.

🔒 Private IP

Used for devices inside your company's local network (LAN). Like office room numbers or phone extensions.

Use Case: Connecting employee computers, internal servers (e.g., finance database), and office printers.

Private IPs enhance security by keeping internal devices from being directly accessible from the internet.

Static vs. Dynamic IPs: A Strategic Choice

How an IP address is assigned to a device has major business implications.

🎯 Static IP

A fixed, unchanging IP address.

Best for:

  • Company Web Server
  • Email Server
  • VPN for remote HR/Finance access

Why? Reliability. You need a permanent address for critical services that others need to find consistently.

🔄 Dynamic IP

An IP address that is assigned temporarily from a pool of addresses.

Best for:

  • Employee Laptops
  • Guest Wi-Fi Network
  • Smartphones

Why? Cost-effective and efficient for managing a large number of devices that don't need a permanent address.

Securing the Network with IP Addresses

IP addresses are a primary tool for network security, managed by a Firewall.

A Firewall is a network security device that monitors incoming and outgoing network traffic and decides whether to allow or block specific traffic based on a defined set of security rules.

Business Security Scenario 🔐

The Finance Department's server contains sensitive payroll and budget data. How can we protect it?

Firewall Rule:
"ALLOW connections to the Finance Server (IP: 10.0.2.5) ONLY from IP addresses belonging to the Accounting Team's computers (IP Range: 10.0.1.10 - 10.0.1.30). DENY all other connections."

Practical Application in Nepal 🇳🇵

IP addressing is the backbone of Nepal's growing digital economy.

eSewa (FinTech)

Uses static public IPs for its secure payment gateways. Firewalls heavily restrict access to protect financial transaction data.

Daraz (E-commerce)

Manages thousands of servers with both public and private IPs to handle customer traffic, process orders, and manage inventory data securely.

CG Foods (Manufacturing)

Can use private IPs for IoT sensors on its production lines to monitor output and efficiency, sending data to internal servers for analysis. IPv6 is key for future expansion.

Summary & Key Takeaways 📊

  • IP Addresses are Business Tools: They are the unique identifiers for every asset in your digital business, from servers to sensors.
  • IPv4 is the Present, IPv6 is the Future: Businesses must plan for IPv6 to support growth, IoT, and enhanced security.
  • The Right IP for the Right Job: Strategic use of Public/Private and Static/Dynamic IPs improves efficiency, security, and saves costs.
  • Security Starts with the Address: IP-based rules in firewalls are a company's first line of defense in protecting critical data across all departments.

Thank You!

Any questions?


Next Topic: Securing IP Networks: Firewalls, VPNs, and Access Control

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