IP addresses are broken down into octets. These sections contain numbers generally between 1-254. The number 0 (zero) can be used in the second octet and the third octet. Zeros (0) in the first and last octets are considered invalid. Numbers higher than 254 are also considered invalid.
The first octet determines the subnet your computer is on. This determination gives you information about how many computers can be on a network. To break down the first octet, let's look at the chart below.
Class A 1-126
Class B 128-191
Class C 192-223
Example: 192.168.0.15 IP address would be in a Class C subnet.
What does the example above mean? The chart below gives the number of devices (computers, routers, etc.) that can be in a network based on its subnet.
Class A 16 million
Class B 65,000
Class C 254
Now, look back at the sample and you will see the first set of numbers (the first octet) is 206. This puts the computer or device in a class C. Therefore, 254 devices can be used in your network. Generally your router has a private number and you will get a second IP address for your computer. This leaves 252 more computers or devices that can be put into your network.