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2) We ip route the block to the customer’s service IP. This is common for those who use a VM router or use IPs in cPanel.
You signed up with Dacentec, I see.
YA but I need help with that, dont understand that part.
1 IP for router communication second one is for your public usage
The first options is known as getting your own VLAN (Virtual Lan), to do this they usually give you a subnet of ip addresses based on your requested amount of ip addresses, and use the first ip in the range as your Gateway address (it is a physical address added to the router which is used to route your subnet) and the last ip as your broadcast ip.
In the second option you are not provided a VLAN or a subnet, you are placed onto an existing subnet or VLAN and given an available ip on that VLAN. Usually used for a shared server, they will setup a VLAN for the server giving it X number of ips and will then give you an ip from this available pool of ip addresses on the server.
I hope this helps to answer your question.
Cheers!
If you're still unsure, I'd pick #2.
From what I understand you will still waste the IPs for broadcast/gateway with 2.
I had that option at my former job, the /29 was routed to us through our IP (on another subnet) and had to set our own routing which, of course, needed a gw and broadcast so in the end still 5 usable IPs.
Unless it means something else ?