Choosing Wisely: Datacenter or Residential for Your Business Needs

The use of proxy servers is indispensable for businesses seeking privacy and anonymity on the internet while retrieving data for competitive intelligence accessing content banned in their geographical region. However, having several proxies available in the industry makes it quite challenging to find the best choice that suits your business needs.

Of all the available proxies, datacenter and residential proxy servers are the most well-known. Both proxies help users perform various activities while maintaining their original identity concealed. But deciding which proxy is better than the other highly depends on your needs.

To help you make the right choice, we’ll cover datacenter and residential proxies in more detail, comparing how they work, their benefits and drawbacks, and their primary use cases.

What are Datacenter & Residential Proxies

A datacenter proxy server acts as a gateway between a device accessing the internet and the website being visited. These proxies assign users IP addresses from datacenter proxy pools and third-party cloud service providers.

There are two types of datacenter proxies: shared and dedicated. Shared datacenter proxies can be used simultaneously by multiple users, whereas dedicated proxies are exclusively assigned to one user and not shared with others.

Residential proxies act as intermediaries between the client and server, thereby preventing the actual address of a user from being revealed. These proxies use residential IP addresses directly linked to an ISPrather than data centers.

There are two types of residential proxies: static and rotating. Static proxy servers assign a static residential IP address that can be used for an extended period of time. In contrast, rotating proxies assign a different address from the proxy pool for every connection.

How Datacenter Proxies Work

Datacenter proxies function in the same manner as any other proxy. The user purchases a proxy service and configures the gateway solution on their internet-enabled device. The proxy provides them access and connects their device to its servers in the data center.

When a user sends a request to access content on the internet, datacenter proxies assign available IP addresses from their servers. The new address masks the user's identity and location, allowing for safer navigation as a result.

How Residential Proxies Work

Generally, residential proxies route traffic through an intermediary server. The server assigns the user an alternative IP address through which all server requests are channeled.

When a search request is made, it is transferred to the resource server through the residential proxy. This way, the original IP address is hidden, and the website perceives user activity as that of any other usual user.

Benefits and Downsides of Datacenter and Residential Proxies

Similar to other proxy servers, datacenter and residential proxies come with their fair share of pros and cons. Datacenter proxies are reasonable and offer incredible speed, but they secure online anonymity only to some extent.

On the other hand, residential proxies offer high-degree anonymity since they have an extensive IP pool. However, these proxies are slower than other types of proxies as they use real IP addresses and follow the same route as usual users. Furthermore, residential proxies are limited in availability, and their use may have legal implications in certain countries.

Use Cases of Datacenter & Residential Proxies

Both datacenter and residential proxy servers have proven to be useful for businesses in numerous ways. For clarity, we have organized the following use cases by the proxy type with which they are most commonly associated. It's important to remember that these are not strict rules; many tasks can be performed successfully with either type. The best choice for your business will always depend on factors such as the scale of your project, budget, and the technical sophistication of the websites you are targeting.

Here are the main use cases of datacenter proxies:

  • Web performance and load testing. Businesses use datacenter proxies to simulate traffic and test how their web or app performs for users in specific regions. These proxies are particularly beneficial due to their speed and stability.

  • Review monitoring. Datacenter proxies are great for collecting vast amounts of review data from websites. Brands use these proxies to gather customer reviews and improve their services or products based on various factors. These reviews provide them with information about existing and potential customers regarding their services.

The following are the key use cases of residential proxy servers:

  • Market monitoring. Many e-commerce sites block traffic from data centers and display different prices and availability based on the user’s location. With residential proxies, businesses can collect real-time data on product prices, stock availability, and competitors’ promotions.
  • Ad verification. Residential proxies assist companies in verifying the accuracy of their displayed advertisements across various platforms. They can better monitor the network traffic to identify ad fraud and block suspicious websites.

Final Verdict

To summarize, we have covered both datacenter and residential proxies, their pros and cons, and their main use cases. Although both proxy servers serve the purpose of connecting the client and server, their working methods and purposes differ.

Datacenter proxies are fast and cost-effective, making them ideal for high-volume tasks such as web performance testing and gathering data from review sites. On the other hand, residential proxies offer unmatched legitimacy, which is essential for sensitive tasks such as market monitoring and ad verification. Ultimately, choosing the right proxy depends on your specific operational needs. Whether you're seeking speed or stealth, it’s important to buy proxy server solutions from a reliable provider that align with your business goals.