Why tech companies use a residential proxy

No matter the size of the IT company, chances are that it is using a VPN or a residential proxy to provide internet to its office assets. Know what are the reasons that make a residential proxy necessary and the benefits that come with it.

In the latest update from Statista, fraudulent traffic generated by bots considered to be malicious accounted for 27.7 percent of all web traffic. Most site owners will seek to ban them in this instance. Tech companies will benefit from a residential proxy's ability to simulate requests like actual users with a local IP address. Many businesses use this technology for data collection and advertising, among other benefits.

Let's break down the types of proxies available and the advantages of using a proxy residential network.

What is a proxy?

Proxy servers are a system that acts as a connection point between users and the internet. As a result, it aids in preventing cyber criminals from infiltrating a private network. This is more effective than relying on a hotspot from your mobile device, as a proxy server is an intermediary between end-users and the websites they browse online.

For tech companies in particular, proxies give an extra layer of security to your computer network and can be configured to act as web filters or firewalls to help protect it from harmful malware attacks.

Types of proxies

There are many types of proxies, each with its advantages. Depending on your needs, one type of proxy might be better for you than others. If you are thinking about installing a proxy for your business network, you'll need to carefully consider which is right for you. Here are a few of the most intriguing proxies, along with the one which is considered the best for a tech company - a residential proxy.

Data center - This proxy server is physically located in a data center, where user requests are evaluated and forwarded. The key thing to remember is that it is not linked to an internet server, but to a separate organization via a data center.

Rotating - With rotating proxies, users employing rotating proxies are assigned a unique IP address that differs from the device that was previously connected to it. This means there is less likely to be an issue where the IP is blocked by sites.

Forward - Forward proxies are used to send data to groups of users within a network. When the sender transmits the request, the proxy server evaluates the data to determine whether it should proceed and build a connection.

Transparent - This type of proxy can be used to remain concealed from whatever individuals it is used on. This form of proxy is ideal for organizations that want to utilize a proxy without alerting employees to the fact that they are using one. However, transparent proxies are more susceptible to certain security vulnerabilities like DoS (Denial of Service) attacks.

Residential - Residential proxies assign the user an IP address that is linked to a physical device where all requests are evaluated and redirected. The crucial point to remember is that a residential IP address must be supplied by an internet service provider rather than a cloud hosting company. This distinguishes them from data center proxies. Residential proxies are typically the most reliable proxy servers since they are linked to tried and true IP addresses.

Now that you understand what a proxy is and an insight into a few of the different types out there, let's discuss the advantages of using a residential proxy over other proxies.

What are the advantages of residential proxy?

You might be wondering, why a residential proxy? Firstly, residential proxies are a fantastic tool for companies that want to acquire and analyze data, compare prices and products online, and maximize their market reach without being identified or restricted by websites. ​​Aside from concealing your identity, there are other advantages to using a residential proxy, including site scraping, ad verification, SEO research, e-commerce, price comparisons, and a variety of others.

Remember, although some proxy types work similarly, residential proxies are set apart because ISPs (Internet Service Providers) distributed them to homeowners. This ensures they can be easily traced, and because they can be identified, many websites trust and regard them as legitimate.

The advantages of using residential proxies include accessing geo-restricted content and geo-blocked content. This is a primary benefit of a residential proxy and one less thing to worry about while running your business. Moreover, staying anonymous with a residential proxy is beneficial in allowing you to track and monitor your SEO results, and scrape data from web pages without being blocked.

Even if your company requires technical outsourcing to support a proxy network, the advantages will be worth it. Although anonymity through a residential proxy is a main advantage for companies, there are a few other advantages that your tech company will benefit from.

How can companies use it?

Brand protection is one practical application of residential proxy technology. If you are dealing with another company selling a counterfeit version of your products or services, a residential proxy could help you gather data to prosecute these companies if they restrict access to their websites from your country. Protect your intellectual property and make certain that no unauthorized individuals are using your brand's copyright and assets.

Another use for residential proxies is social media management. Static residential IPs are the most effective strategy to advertise your company by managing many social media accounts at once and automating social listening procedures. If you have a whole team managing your social media, a static residential proxy allows you to log in to the same account safely on different devices, eliminating unnecessary problems caused by suspicious detection by the platform.

Lastly, residential proxies can also be used for advertising optimization. To achieve the best results, marketing campaigns must be tested. Residential proxies can be used to determine how specific internet adverts appear, for example, in search results for users from a specified place, and whether or not they are displayed. Using residential proxies also aids in evaluating the efficiency of local search engine optimization efforts. You can determine whether the website ranks at the top of the rankings for targeted search queries, how its ranking changes over time, and so on.

Final thoughts

Utilizing residential proxies and their advantages is a smart move for any tech company. Even though proxy servers are used to protect computer networks, there are several other practical uses that you can benefit from to improve your business infrastructure.


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name: