Every small piece of information transferred on the Internet is passed via an IP address. This address is just like your home address, and like a physical address can contain multiple houses , multiple websites can reside at one IP address. This setup is called shared hosting.
A dedicated IP gives you with your own private and unique online address that one can use to go directly to your website. A dedicated IP is necessary for services that require the passing of delicate and private information such as credit cards, social security numbers, and purchase information.
Benefits of having a dedicated IP over a shared IP:
Run Special Software on Your Server
Certain programs require a dedicated IP address before they can be set up and used. A dedicated IP allows you more options for available scripts.
Open Custom additional Ports
Gain access to additional ports you may need to run special services on that are blocked for shared IPs.
Avoid Negative Impact from Others who are sharing the same IP
On a dedicated IP you avoid possible negative action taken against shared IP users should someone on the same server get blocked.
Rank Better in Search Engines
Many experts believe that sites with a dedicated IP rank better in search engine results than those on a shared IP.
Browse Your Website by IP
Handy for situations where you want to access your site, but your domain name is inaccessible or not configured properly.
Enable SSL on Your Website
SSL Certificates are crucial if you have a business-oriented website and want to collect sensitive information such as credit card numbers.