Static IP Allocation

• A static IP address is permanent and is allocated by a network administrator, or in the case of a home computer, your internet service provider.
  
  

Dynamic IP Allocation

• A dynamic IP address changes each time the device is connected to a network. It is automatically allocated by a DHCP, or dynamic host configuration protocol server, to save time for network administrators. While it may change often, the home user is rarely aware of the change, as the computer's modem will automatically update to the new IP address.
  
  

Static IP Usage

• A static IP address is used to host multiple servers that allow outside access from the internet, whether for email, FTP (or file transfer protocol) upload of large files or for other uses. This allows other computers from outside the hosted network -- on the internet -- to know where to find the data that is being communicated.
  
  

Dynamic IP Usage

• A dynamic IP address is used to access information as a user. Typical examples include accessing email from an off-site service such as Yahoo, AOL, Google, Hotmail and others. The usage of dynamic IP addresses allows the reuse of IP addresses when computers are not continuously connected to a network.