Every computer running TCP/IP needs an IP address. This address has to be unique inside a sub network but it is not worldwide unique.

 

Pros/Cons

+ Works in single user and network environment

+ Ideal for a server with an static IP address

- Only unique in a subnet, not unique worldwide

- Allows to install the application multiple times on the same server / computer

 

Recommendation

•Can used as an alternative for the hostname