An IP (Internet Protocol) address is a sequence of numbers assigned to every device that accesses the Internet. In addition to computers and mobile devices, web servers have their own unique IP addresses.
In the case of shared hosting, hundreds (or potentially thousands) of websites all reside on the same server, and each one of the hosting accounts associated with every one of those sites will have the same IP address.
This is not necessarily a problem, but some websites may benefit from having their own dedicated IP address, which is unique to their hosting account.
When Do I Need a Dedicated IP Address?
As far as hosting goes, you’ll encounter a couple of specific situations where a dedicated IP will be helpful or necessary.
For SSL Certificates
In the past it was a technical requirement that an SSL certificate required a dedicated IP address. This is no longer the case.
For High-Volume Traffic
Larger/busier websites, in particular e-commerce websites, are more likely to have a dedicated IP address to distinguish them from a shared hosting environment.
For Cloud/Dedicated Servers
These servers will be assigned a dedicated IP address in all cases, so you don't normally need to pay for one. If you have multiple sites on one cloud/dedicated server, you may optionally want additional dedicated IPs to assign to those websites.
