DHCP (Dynamic Host Configuration Protocol) is a communications protocol that lets network administrators centrally manage and automate the assignment of Internet Protocol (IP) addresses in an organization's network. Using the Internet Protocol, each machine that can connect to the Internet needs a unique IP address, which is assigned when an Internet connection is created for a specific computer. Without DHCP, the IP address must be entered manually at each computer in an organization and a new IP address must be entered each time a computer moves to a new location on the network. DHCP lets a network administrator supervise and distribute IP addresses from a central point and automatically sends a new IP address when a computer is plugged into a different place in the network.
DHCP uses the concept of a "lease" or amount of time that a given IP address will be valid for a computer. The lease time can vary depending on how long a user is likely to require the Internet connection at a particular location. It's especially useful in education and other environments where users change frequently. Using very short leases, DHCP can dynamically reconfigure networks in which there are more computers than there are available IP addresses. The protocol also supports static addresses for computers that need a permanent IP address, such as Web servers.
DHCP is an extension of an earlier network IP management protocol, Bootstrap Protocol (BOOTP). DHCP is a more advanced protocol, but both configuration management protocols are commonly used and DHCP can handle BOOTP client requests. Some organizations use both protocols, but understanding how and when to use them in the same organization is important. Some operating systems, including Windows NT/2000, come with DHCP servers. A DHCP or BOOTP client is a program that is located in (and perhaps downloaded to) each computer so that it can be configured.