Privacy is the cornerstone for many business practices as it keeps them safe online. However, choosing the right tools for this task can be challenging, and today we will discuss the topic of proxy vs. VPN and each of their benefits.  

What is a VPN?

As the abbreviation VPN (a virtual private network) already implies, it is a way to create your own secure network for connecting to the world wide web. Companies frequently use VPNs as a convenient solution to allow remote employees to access the company’s network safely.

We can imagine VPNs as creating a “tunnel” for your traffic with encryption and one or multiple intermediary servers. Encryption is key here, as other privacy tools will require you to put more effort into your data encryption. With VPNs, it is always a few clicks away.

Most reputable providers will guarantee that they don’t keep logs of users or track their activity. Although, there have been some instances where providers have given up user data to the authorities.

VPNs need additional software to enable encryption which will take some computing (RAM and CPU) power from your device. However, it usually comes with some handy extra features, such as antivirus, malware monitoring, ad-block, etc. Setting up such software will instantly change your IP address and encrypt your data.

The benefits of VPNs for business

Besides the obvious benefits of securing your connection and making you anonymous online, VPNs have two advantages explicitly aimed at businesses:

Changing your geo-location. With a good VPN plan, you will be able to choose the country you want to connect from. This is beneficial for businesses that need to bypass various content restrictions on a daily basis.

Suppose you need to access a competitor’s website in a foreign market, but it is restricted only to IPs from that country. With a VPN, you only need to change the IP address to the relevant location, and all content will be available.

Establishing a secure connection. VPNs can be set up to give access to the internal servers of a company. Employees, who work from home or travel, can still access the needed data or internal systems. It is crucial to keep your operations running even with the constant movement of your workforce.

Furthermore, it is quite a simple process from the user’s side. The employee will need to open a program, enter a password, and the connection will be established and encrypted automatically.

What is a proxy?

Proxies are devices that can act as intermediaries while you connect to the internet. Instead of your machine sending requests for connection, you can give them to a proxy server, which will connect on your behalf. Following such a process will conceal your IP address and enable you to show different geo-location.

Unlike VPNs, proxies do not need any software to run. You will receive proxy credentials and will be able to use the proxy as you please. Setting up a proxy in the settings of your PC, browser, or additional software are all viable options but may be more challenging to use than VPNs.

Another proxy vs. VPN difference is that proxies do not come with encryption or any other additional software out of the box. However, some proxy types (such as HTTPS proxies) can have encryption, and with some technical know-how, it can equal or even improve the security of the connection compared to VPNs.

Proxies have a lot of types adaptable to different use cases. Cheaper options usually have shared access with other users, but better performance comes when you have a private IP pool for yourself. The origin of IP addresses can also differ. 

The origin of IP addresses can also differ. Some proxies are residential and hosted on physical devices with home connections, while others use mobile devices, such as tablets or phones. They are more expensive but best for keeping privacy. Perhaps the most popular type is datacenter proxies – they use a fast and cheap commercial connection with IPs created virtually in bulk.

The benefits of proxies for business

Some of the most important benefits overlap when comparing proxy vs. VPN. Both products can change your IP address and show a different geo-location to websites (click here to read more detailed information). Furthermore, while more common with VPNs, encryption is also possible with some proxy types. However, the most significant benefit of proxies is that they enable vital business tasks.

Large-scale data gathering. The internet is full of valuable data and making business decisions without gathering it is no better than guessing. That’s why many businesses use web scraping to collect data online automatically. Instead of copying data yourself, a bot will do it for you in seconds.

Unfortunately, increasing loads from scraper bots are rarely welcome on websites, so your IP will get banned pretty quickly. It is best to employ good quality residential proxies for important tasks, such as market research, ad verification, and brand protection.  

Social media automation. Having multiple social media channels is key to successful online marketing campaigns. However, managing social media accounts is a pain only automation can relieve. Some sites go easy with automation tools, but most popular platforms are impossible to manage effectively without proxies helping you avoid IP blocks and bypass geo-restrictions.

Cybersecurity. Businesses face online threats daily – phishing attacks, spam emails, malware, and many other dangers. There is some specialized software that can filter your emails, monitor your website, and shield you online. However, it requires multiple IP addresses to function properly, and there isn’t a better solution than proxies.

Conclusion

Both tools have strong benefits for businesses, but it is safe to say that proxies are a more adaptable solution. They can accomplish everything a VPN does and add some uses for common business use cases. Choosing a VPN should only be an option for those who don’t have any time to invest.

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