DHCP (Dynamic Host Configuration Protocol) is a network management protocol used on IP networks. It automates the process of configuring devices on IP networks by assigning IP addresses to devices, allowing them to communicate on the network. The DHCP server dynamically assigns IP addresses from a predefined pool and leases them to devices for a specified period. This eliminates the need for manual IP configuration and helps avoid IP address conflicts. References to Axis documentation confirm that DHCP is essential for managing and automating IP address allocation in networked environments.