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.
DHCP supports static addresses for computers containing Web servers that need a permanent IP address.
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.
This was first published in May 2005