Microsoft Splurges To Remain On Top
Microsoft has spent 7.5 million dollars to remain competitive in the Internet Protocol industry. The seven and a half million dollars covers 666,624 IPv4 addresses. Although we were supposed to have transitioned to IPv6 addresses by now, Microsoft has taken sharp notice of the IPv6 delay and realizes that IPv4 addresses are becoming scarce. For those who need a quick refresher on internet protocols, IPv4 stands for Internet Protocol version 4 and is the fourth revision in Internet Protocol development, also the first to be widely deployed. For $11.25 an address, Microsoft will not be gaining any domain space or website traffic, these are simply routing numbers users need to connect to the world wide web.
What’s even more interesting is that the deal came as part of Nortel’s liquidation under US bankruptcy law, something that has been in the works since 2009. Nortel has been trying to close this deal for quite some time. After talking to 14 potential investors about a year ago, Nortel eventually received four bids for the full block and three bids for part of the portfolio, and of course, Microsoft was the winning bid. The total value of all IPv4 addresses is around 48.3 billion dollars. Although recessions are never a good thing, it is interesting to see so much action on the selling floor. It appears that companies and ‘things’ are being acquired left and right. Nobody can predict what the market will look like once we climb out of this recession and have our U.S. economy up and running again.