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Consider a professional webmaster's own website. Lets say he hosts all his clients websites, as well as his own, and he links to his clients websites in his portfolio page... should he be penalized?
With the amount of people hopping on things like Intuit or GoDaddy then more and more sites that link each other may be linking to sites on similar ips if they use the same major host.
If Google wants to consider sites siblings it should use whois info not similar ip range, and I think they will start moving this way because of how many people use common hosting solutions.
If Google wants to consider sites siblings it should use whois info not similar ip range
I would assume they already do.
Just be careful when doing this. There often is no logic or real guidelines in terms of doing it, and I have seen websites get hit for excessive cross-linking. Again, the problem being the age-old question - what is excessive?
So yeah, don't overdo it, and if you have a good user-centric reason for thousands of links, nofollow them!