Advantages of Using a Proxy Network Over In-House Data Centers

Advantages of Using a Proxy Network Over In-House Data Centers

Advantages of Using a Proxy Network Over In-House Data Centers

If you're considering setting up a proxy network, you should know about it altogether. There are many advantages of using a proxy network over in-house, including controlling everything. In this article, we'll go through the benefits of employing a proxy network. Not only benefits, but we will also go through some other aspects. So, let's get started.

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What is a Proxy Server?

A proxy server serves as a gateway between your browser and the internet—your internet traffic routes through the proxy server before reaching the page. A proxy server acts as an intermediate between you and the visited websites, and it ensures that you never have direct interaction with the websites. A proxy server, often known as a forward proxy server, has this general definition. A proxy server acts as a messenger or gateway to the internet, as a proxy acts as a representative.

How Do Proxy Servers Work?

You create and submit a web request which transmits to a proxy server every time you access a website. This happened by clicking on a link or typing the web address into your browser. The proxy server then alters and encrypts your data before sending it to the online site. The website then sends its data to the proxy server, and it processes the data before sending the web page information to you. It acts as a firewall or a web filter, allowing you to receive only the information you want. 

There are three types of proxy servers available, depending on the network architecture and configuration requiring a proxy:

Forward Proxy Server

Internal networks usually involve Forward Proxy Servers. When it comes to forwarding Proxy Servers, how does a web proxy work? When one of the clients sends a request to connect to a specific website, it must first pass through a Forward Proxy Server, which determines whether or not the client is permitted to access the resource. If proper, the connection request is routed to an external server, unaware of the client's IP address, and only sees the connection request sent by the Forward Proxy Server. A Forward Proxy Server gives you complete command over your local network connections. It functions as a shield or firewall, allowing administrators to block access to undesired online content by blocking internal network clients. Proxy servers of this type might be found in schools and institutions.

Reverse Proxy Server

Unlike a Forward Proxy Server, a Reverse Proxy Server works on the backend of a website (or online service), hiding IP addresses within the internal network from outside visitors. The Reverse Proxy determines whether or not web users can view a website's content or use an online service. In terms of advantages, Reverse Proxy Servers make it exceedingly difficult for hackers to attack internal servers. It also serves as a load balancer, distributing data around internal servers and preventing overloading from many connection requests. Web service companies utilize proxies of this type.

Open Proxy Servers

Open Proxy Servers allow internet users' requests to be forwarded as well as getting responses from websites. This type of proxy server's main benefit is that it hides the user's real IP address from the internet. Open proxy servers, unlike dedicated proxies, do not require user authentication and are vulnerable to misuse and malware infections.

What is Datacenter Proxy?

Datacenter proxies are remote servers to which you can connect if you need to hide your IP address for a specific reason. These are shared servers: It means that other users will be able to connect to the same proxy simultaneously as you. A few advantages and disadvantages of using data proxies are


  • The cost is reasonable. Because multiple users generally share these proxies, the proxy provider can split the costs and charge a lesser fee.
  • Connection speed is excellent. Servers are designed to handle a large number of connections. As a result, when using data center proxies, you should expect a lot of bandwidth.
  • Suitable for a wide range of applications. Datacenter proxies can suffice when you need to access geo-restricted content or remain anonymous, which are the two main reasons people disguise their IP addresses.


  • The possibility of being banned. Because other users will connect to the same proxy as you, the destination server is more likely to suspect something. However, the risk is still low because you must visit the same page as the other proxy users.
  • For web scraping, it's not ideal. Residential proxies will do a better job of impersonating real users for your web scrapers. Datacenter proxies, on the other hand, can more easily trigger anti-spam systems.

How do Data Center Proxies work?

Datacenter proxies work straightforward. When you request a specific website, it is routed through the datacenter proxy server. Before sending the request, the server masks your IP address by assigning it to another IP address. The response to the request is then sent via the newly assigned IP address before being sent to you. Websites will be unable to determine the genuine origin of the request in this manner.

Datacenter proxies are used in cloud servers, dedicated servers, virtual private servers, and other data centers. Some of the applications for data center proxies are listed below.

  • Proxies for data centers are not positioned in actual residential areas. As a result, you can surf anonymously without disclosing your true location.
  • Accessing geo-restricted content. Netflix, YouTube, Hulu, and other streaming services limit material to specific countries. However, using a datacenter proxy, you can get around these limitations. Users can connect to servers in the country where the content they desire is not prohibited using datacenter proxies, which have a large network of locations.
  • Bans on IP addresses are circumvented. IP bans can be resolved using datacenter proxies. Your real IP is hidden, and a new one is assigned whenever you connect to the datacenter proxy. The website will not be aware that you are the owner of the blocked IP address in this manner.
  • Today, social media platforms work around the clock to identify and remove fraudulent profiles and individuals with multiple accounts. A single IP address linked to multiple accounts is usually a red indicator. Datacenter proxies are ideal because you can connect to a different account each time you check in.
  • Observing the advertisements of competitors. Competitor advertisements can be spied on via data center proxies. By connecting to data center proxies in the countries you're interested in, you may compare the advertising competitors offer to various audiences in different countries.
  • Ad delivery is being tested. Before launching an ad campaign, you must conduct extensive testing to guarantee that it is presented correctly to various audiences in various locations. You can achieve this by connecting to data center proxies in the desired country.
  • Market research is an important part of every business. It's critical to switch between nations while conducting comprehensive market research to better understand the various marketplaces. This guarantees that you create an objective and long-term marketing strategy.
  • Research in academia. Some academic information is only available in certain countries. Datacenter proxies are the best way to access such information. Plus, there's more. To scrape academic data, data scientists use data center proxies.

Types of Data Centre Proxies

Datacenter proxies are proxies that are linked to your IP address to help you remain anonymous online. They are unaffected by the speed of your internet connection or the supplier of your internet service. The advantages of employing this form of proxy include the ability to protect your online identity, sneaker copping, and even data scraping. It's also simple to change IP addresses with this form of proxy, and they're not given to anyone because any ISP does not control them.

When you use data center proxies and send a request to a website, the webserver instead checks the credentials of the data center proxy you're using rather than your real IP address, keeping you anonymous. Even though data center proxies are inexpensive and fast, they are significantly blocked when used for data scraping.

There are two types of data center proxies:

1. Hypertext transfer protocol (HTTP) proxy

To completely comprehend the HTTP proxy, we must first comprehend the HTTP protocol. When you connect to the internet, the web browser will display HTTP, indicating that the website uses the HTTP protocol. The protocol has a client-server approach and is very detailed when it comes to requests and responses. In this scenario, the client is a web browser that sends out information in a URL called a request. The server might be anything from an application to a system that can receive data and respond to it with a set of HTTP-formatted resources. This data is subsequently forwarded to the client. Simply put, websites use the HTTP protocol to enable visitors access to the site, and you can use a proxy; HTTP, or SOCKS, in combination to browse anonymously.

HTTP proxies are designed specifically for use with the HTTP protocol. Specific proxies can use these protocols because they usually have specific functions. Because the proxy can read data shared between the client and the server, there is a possibility of storing. HTTP proxies also provide the connect method, which creates a secure and untraceable tunnel connection.


SOCKS proxies, unlike HTTP proxies, are not built for a specific protocol; hence they are flexible and low-level. SOCKS proxies are more flexible since they are not restricted to a single network protocol port. They're also easier and faster to use because there's less coding involved. Because SOCKS can't read data shared between the client and the server, the shared data isn't saved, unlike HTTP. They also use tunneling, and if you need a lot of protection, SOCKS5 is the way to go. It's the most recent version, and it's safer than SOCKS or SOCKS4.

However, using SOCKS has the drawback of not protecting your data on its own. It simply functions as a conduit between your browser and the internet, making the information you transmit insecure and vulnerable to hacking.

What are residential proxies?

Residential proxies allow you to browse the web as a real user in a given place (country, city, or cell carrier). Users are protected from general web traffic using proxies, which are defined as intermediaries. They operate as buffers and hide your IP address at the same time. Proxies are different IP addresses that the provider assigns to users. All user search requests are routed through the proxy IP to the proxy server, which then routes them to the resource server. The user's activity is hidden in this way, and their identity is protected.

How do residential proxies work?

Residential proxies work by routing your Internet traffic through a server that acts as an intermediary. All of your server queries are routed through the proxy server, which grants you another IP address.

It's worth noting that the other IP address supplied is for a real device. When you submit a search request, it is sent through your residential proxy to the resource server. Your true IP address is hidden, and websites interpret your activity as any other regular user. An ideal residential proxy package, depending on the supplier, allows you to target countries and cities, and all requests should be HTTPS encrypted for security.

What are some of the applications for residential proxies?

In comparison to other forms of proxies, residential IPs are more real and trustworthy. Residential proxies can be used for a variety of purposes, depending on your browsing demands. Here are a few applications for residential proxies to consider.

Verification of advertisements

Residential proxies are frequently used for this purpose since they allow you to monitor and verify adverts displayed on your pages, allowing you to recognize and prevent questionable ads. Your competitors may utilize sneaky tactics to harm your brand's reputation if you don't have proper AD verification. It's best to go for a home proxy service that's simple to use. The right platform should allow you to choose residential or mobile IPs for proper ad tracking, media monitoring, and content compliance. These are all good reasons to use home IPs for ad verification.

Scraping the internet

Internet marketing includes a lot more than just banner ads and social media posts. You must research and learn from your competitors. Web scraping is the greatest way to get information about your competitors. Web scraping is possible with residential proxies since they support mass scraping by allowing you to rotate IPs regularly. It's worth noting that data center proxies can be used for web scraping as well. They are, however, best used on a much smaller scale. Residential proxies are ideal for scraping massive amounts of data from Google, Linked In, Facebook, and other major websites.

Price tracking on the market

To keep your customers coming back, you must keep an eye on market pricing trends and follow them. You don't want to overprice your products and turn away potential customers, nor do you want to underprice and have customers question the quality. You'll be able to use sales intelligence tools to get real-time market price updates with residential proxies.

The information gathered by your sales intelligence software should be properly examined. If you don't do it right, you'll wind up with incorrect pricing information, which can be disastrous for your business's sales efforts. In general, residential proxies enable you to employ a variety of sales intelligence products. With this information, you can monitor, compare, and analyze prices to determine acceptable pricing for your products.

Accessing sneaker websites

Shoe sites are frequently under surveillance. This is due to the prevalence of identity theft, design duplication, and purchase restrictions in the sector. Despite this, you can still get all of the information you need from these websites. Residential proxies are an ideal technique to access sneaker sites since they give ad verification. Proxies for sneakers are overrated.

Sneaker proxies can be data center IP proxies. Conversely, sneaker proxies are still blacklisted by Nike, EastBay, and Supreme Shoes while using your shoe bots. Using residential proxies is one approach to get around this issue, and popular shoe sites are less likely to block them because they are reputable.

Getting into ticketing websites

There's no better way to scrape ticket websites than by using residential proxies. They will give you the necessary access to effortlessly compare ticket rates from various vendors.

There are numerous ticket proxies available; however, the majority of them are data center proxies. Datacenter IPs are easy to spot, and ticketing sites can quickly identify and ban customers that use them. Most sites, including ticket sites, trust residential proxies, and you can use them to get all the information you need from various ticket sources.

Internet marketing

This is a very good platform. Site owners are continuously looking for new methods to outsmart their rivals. In such a competitive environment, the best way to survive is to analyze your competitors' strategies. Maximize your marketing potential by utilizing the power and potential of residential proxies. Improve your market reach by using ad automation, social media campaigns, and email automation.

SEO content compliance

Residential proxies support different SEO tools. Apart from Scrapebox and Xrumer, the platform supports a wide range of tools. Appropriate onsite SEO boosts traffic and leads to your website. By scraping competition websites, you may learn about their keywords and traffic sources.

You can also change the content of your website to support multiple languages. It's also critical to build links to and from an authoritative site. The residential proxy platform helps you generate meaningful links for your website to thrive with the correct tools. You can also review and examine the effectiveness of previous links. You can use several auditing and crawling programs to do such activities, allowing you to optimize your site's performance.

Management of social media

The importance of social media in current web marketing cannot be overstated. It is now feasible to create and administer multiple social media accounts using residential proxies.

Residential vs datacenter proxies

The IP addresses utilized by data center proxies and residential proxies are very different. While residential proxies provide actual IPs, data center proxies provide proxies that data centers monitor. Which one, on the other hand, has better features? Examine some of the fundamental features to choose which proxy is best for you.

  • Efficiency in terms of cost: Which proxy performs better in terms of price estimation? In comparison to residential proxies, data center proxies are generally less expensive. Residential proxies have a place with genuine users; however, data center proxies are supervised and produced in large quantities by the data centers. Furthermore, data center proxies are less expensive because the packages given by sources include many IP addresses, implying that many customers on the cloud provider platform share costs. This makes it significantly less expensive than residential proxies that are assigned to a specific user.
  • Security: Residential proxies are far safer than data center proxies, which helps to justify their greater cost. Residential proxies are difficult to distinguish because the IPs are associated with genuine users. Data proxies' behavior can be easily detected and identified, and large sites with strong security can ban them. Residential proxies are certainly safer to employ in cases of supervising large corporations; you simply need to change your IP address with a proxy, and you can scrape any website without fear of being reported or blocked.
  • Speed: Datacenter proxies are significantly faster than residential proxies because they are manufactured in bulk by data centers. In any case, we have static residential proxies to compensate for the performance issue. Try employing static residential proxies for your organization if you want to enjoy the advantages of both residential proxies and data center proxy services. The qualities of home and data center proxies are combined in this class of proxies. The end-user appreciates the bot's increased speed, stability, and anonymity. A static residential proxy provides all of the advantages of a data center proxy while also addressing the speed issue.
  • Accessibility: There are a lot of data center proxies available. The main reason for this is that the data center produces them in large quantities. Residential proxies, on the other hand, have a place with actual clients who rent out their IP addresses. As a result, they are not readily available in large numbers.
  • Trustworthiness: Residential proxies are far more reliable than data center proxies in terms of trustworthiness. The logic behind it is obvious. Because private or residential banner proxies can be linked to a real physical location, it's difficult for sites to consider them improper or fraudulent. Residential proxies are now more trustworthy in terms of security and circumventing IP masking or geo-blocking.

Advantages of Using a Proxy Network Over In-House Data Centers

The only way for businesses to stay at the top is to have the most valuable and up-to-date data in today's world. Your in-house data centers collect all the web information your business needs, and by using the proxy network, you can scale this process more effectively and quickly. Following are the advantages of using a proxy network over in-house data centers:


Your proxy network should be able to meet your needs and those of your company. Being able to make quick adjustments is important in a continuously changing market, and any needs that necessitate quick modifications are constrained while administering your proxy network.

It could take weeks or months to replace restricted IPs, switch to IPs from a different GEO, or test new types of IPs. The process would entail obtaining new IP ranges, preparing them in various geolocation databases, routing them to your data center servers, and internally integrating the new IPs - all of which may take a long time.

If, for example, a portion of one of your ranges was blocked, you'd have to decide whether to wait for the blockage to be removed or to replace the entire range - including blocked and good IPs.

Complete Control:

The most significant advantage of installing a proxy network on-premise is the complete control it affords. A company can scale up or down as needed while adhering to strict data security and procedural guidelines. Maintaining uninterrupted data flow; having everything on hand allows for speedy troubleshooting. On the other hand, complete control also means complete responsibility. TO RESOLVE DIFFICULTIES, the IT department must train and allocate personnel, maintain facilities, and have technicians on call 24 hours a day, seven days a week. Unless the company already has the resources or operates on a large scale, this incurs significant upfront and ongoing costs.

This is just one piece of the puzzle. A data center proxy network comes with its own set of issues. Provisioning new IP addresses take time to authorize and deploy, not to mention the costs of obtaining increasingly scarce IPv4 addresses. Setting up, rotating, and monitoring proxy IPs necessitates a specific skill set that may be difficult to come by. Finally, because the physical locations of the servers have a significant impact on latency, this technique limits reach.

Resources and Diversity

The setup is time-consuming, but administering a proxy network of any size necessitates time and resources. This entails obtaining servers from data centers in the appropriate regions. Then it's time to set up the servers, update configurations, and install the software you'll need to run your business. Then, by routing through 3rd-party upstream providers, you must constantly manage your IPs and servers. Updating or correcting the IP geolocation in the various geolocation databases used by your target websites is part of maintenance. The proxy network must be kept up to date, and any problems must be resolved. When maintaining your proxy network, you'll also need to refresh IPs, which entails replacing entire IP subnets and re-configuring them with suitable routing, geolocation, databases, and other features.

The lowest subnet of IPs to buy/lease is a '/24' subnet of 254 IPs on average. This means a small/medium in-house proxy network will fall into one of the following scenarios:

Because of its diversity, maintaining a larger proxy network than necessary raises overall proxy expenses. Having the appropriate network size but little or no diversity. When there is a lack of diversity, there is a greater likelihood of being blocked. Furthermore, if any of your subnets are banned, a large percentage of your proxy network is rendered unusable, rather than just a tiny portion as in a highly diversified network.

Execute Sensitive Tasks Anonymously

The ability of proxies to anonymize online traffic is undoubtedly their most well-known feature. Unfortunately, many people are unaware of how critical this function is for companies. Reporters, whistleblowers, and security officials rely on proxy servers for additional identity protection to safeguard themselves, their sources, their companies, clients, and partners. You can also better safeguard any ongoing research and development as well as other business activities.

If your company always employs a proxy, any possible spy seeking to trace web traffic to figure out what your business is up to will have a harder time tracking your employees. Any sensitive internet tasks are more secure if they are first anonymized using a proxy.

The IT department will have less work to do. 

The proxy provider handles everything from facility and hardware maintenance to IP purchase and support. This allows the IT staff to focus resources on more productive duties like data collection and analysis. There is only one point of contact, and there is only one entity to deal with instead of multiple data centers and IP vendors. The majority of major proxy providers are large enough to meet the demands of most businesses on their own.

Employee Internet Usage Can Be Controlled

On workplace networks, no company wants employees visiting insecure or unsuitable websites. As a result, many internal networks use a proxy server.

Network administrators can manage which devices have access to the network and which sites can view when the network is accessed through a proxy. You can ban any sites that you don't want employees to visit on business time and any unwanted content.

For internal purposes, network administrators can even keep track of what content is accessed and when. Many security officers use it to keep an eye out for possible criminal activities or security breaches.


Let's imagine you're an online retailer who wants to start by purchasing IPs. Obtaining IPV4 IPs is a costly process, with average around $20 per IP and growing. To begin, an in-house proxy network would necessitate a minimum investment of $25,000 for the initial purchase of IPs and the R&D team's running costs. This does not include the servers that are required.

If you elect to lease IPs, a smaller company will pay more than a larger company, usually roughly four times more. In many circumstances, leasing IPs entails a one-year or longer-term commitment.

More variety:

There'll be more variety. Proxy networks encompass many ASNs, subnets, and locales, with millions of IP addresses. Their sheer size allows them to offer a level of variation that an in-house operation just cannot match.

These benefits, of course, come at a cost — literally. You'll be covering a portion of the provider's server, IP, and management fees, as well as all the value-added capabilities put on top if you rent a proxy network. Some of these may be unnecessary or inefficient when done in-house, and however, the advantages speak for themselves.

Simplified Accounting:

The costs of a proxy network are determined by one or more transparently established criteria, such as traffic or the quantity of IP addresses. The dashboards are supplied to make it simple to keep track of them. Electricity, amortization and payrolls are all implicit costs that are already accounted for in the invoice.

Should you use a proxy server or a virtual private network (VPN)?

1. Privacy 

Because of privacy concerns, 74% of Americans have limited their online usage. VPNs installed locally protect your data from the moment it leaves your computer until it reaches its destination. This makes it far more difficult for anyone to spy on your data. Encryption safeguards your data from being intercepted by dangerous hackers even if you're on an open WIFI network.

Your ISP, router, company, or government will not be able to view your data because the VPN uses end-to-end encryption. VPNs hide your IP address and location from the websites you visit, making it more difficult to track you down.

Proxy servers simply operate as a middleman, trying to obfuscate your IP address from the webserver you're visiting. Even if you use a VPN or proxy, you'll be subject to device fingerprinting and other techniques used by shady advertisers to target you with "relevant" adverts. However, concealing your IP address makes it more difficult for firms to connect the dots.

2. Cookies 

Many customers are concerned about how websites and advertisers use cookies to follow their every move due to new rules and increased focus on internet privacy. And here's the thing about cookies: they're stored and saved on the hard disc of your computer, and through the proxy server or VPN, cookies will be downloaded to your computer.

However, if you use a VPN, the cookie will mistake the VPN's IP address for your own, providing some protection from fingerprinting and other forms of digital monitoring. A proxy server can also convince a website to store a cookie with a different IP address. As a result, you must erase all cookies on your computer before using a VPN or proxy service. Existing cookies may interfere with the new layer of privacy if this is not done. The site will link it to your original location and IP address and use it to help fingerprint your device.

3. Cost:

The majority of available proxies are public and free, whereas VPN services normally cost between $5 and $12 per month. You'll also need to choose a reputable premium service if you want to use a proxy server safely. IPVanish, a premium SOCKS5 proxy provider, charges $5 per month, and other options are priced similarly.

4. Connection Speed

Another key difference between a proxy and a VPN is the connection speed.

A public proxy server may struggle to provide even a single megabit per second, but other VPNs provide speeds of up to 50 Mbps. While VPN encryption adds a few milliseconds to latency, it isn't obvious unless you're a top-tier gamer or streamer. Using a VPN can sometimes even improve the speed of your connection. Most large providers use a global network of data centers, and a VPN connection may be faster if the site does not use a CDN or if the CDN's closest data center is far away.



The proxy network should become a must, not an option, for in-house centers. Proxies may or may not be effective in deterring a skilled hacker. They do, however, go a long way toward protecting your company from data breaches, improving website performance, blocking undesirable sites, offering online anonymity, and ensuring a seamless web scraping process.

The proxy network will offer you protection and anonymity; but, the proxy must decode your communication before it can be sent through. Unless you use SSL connections, it can see everything you're doing. As a result, you must invest in a reliable proxy. We've covered all you need to know about proxies, including how they work, how they differ, and the most important benefits of using proxy networks in data centers. After knowing about these benefits, you should not be afraid to use proxy networks.

  • Share it with your friends and partners to let them know about this amazing information if you like the content.
  • Using a proxy network in your in-house data centers would help you collect valuable data and play an important role in growing your company.
  • Leverage the advantages of the proxy network by starting to use it right now.

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