VPN vs Proxy: Which is Better for Your Business Security?

When it comes to online security for your service, choosing the right internet is more crucial than ever. Nowadays, most business operate digitally because they sell goods and services online. With cyber attackers looming around every corner to disrupt or steal data or information of businesses. Therefore, it is pertinent for business owner to safeguard their online activities.

There are two business security measures commonly discussed when choosing, and they are Virtual Private Networks (VPNs) and proxy servers. People often wonder which is better, proxy or VPN? In this article, we’ll break down the difference between VPNs and Proxies and help decide which one is best fit for your business.

What are VPNs?

A Virtual Private Network (VPN) creates a secure, encrypted connection over a public or private server. There is a form of “tunnel” that is created between the internet and the device. Hence, making it hard for third parties or hackers to breach into, monitor, or intercept the data that is being shared.

Types of VPNs

Here are the two main VPNs we have:

• Remote Access VPN: This is the best type of VPN for businesses that have employees globally or working remotely. Remote access VPNs help people connect to a company’s network from anywhere in the world easily.
• Site-to-Site VPN: Also known as a router-to-router VPN, this type of VPN is used by businesses that want to connect more than two locations. For instance, branch offices can connect to their headquarters central network easily.

Before deciding on the best VPN for business security, aim for at least 256-bit encryption and make sure it has a broader range of locations for employees to connect from different countries without restrictions. Likewise, ensure you choose a provider that doesn’t have access to your online activities or retain logs and should be easy for your team to use. 

In addition, when evaluating a VPN, you should always consider whether it meets your specific needs. Here are some of the top VPNs to use for your business.

Nord VPN: Offers a larger server network and excellent performance.
Express VPN: It is known for its high speed and reliable customer service.
Surfshark:  It is cost-effective and offers unlimited device connections.
Proton VPN: This service has a strict no-logs policy to guide user data.

Benefits of using VPNs

VPNs are beneficial for business security for several reasons, which include:

• Encryption: With the help of VPNs, sensitive data or information is encrypted, which makes it difficult, if not impossible, for a third party to access it. In another word, the company’s financial records, customer information, and business secrets will be safe from cyber threats.
• Anonymity: VPNs are beneficial because the Internet Protocol (IP) address of a user is kept secure and anonymous, which helps businesses maintain the level of privacy that they need to protect their data
• Secure access: From wherever in the world, individuals can access the company’s network securely. This gives businesses the freedom to hire remote workers that can work from anywhere. It also allows individuals to bypass geo-blocks, granting them access to websites and streaming services that may be unavailable in their region.
• ISP Throttling Prevention: In some cases, internet service providers (ISPs) may throttle bandwidth based on certain types of traffic, which can be challenging. A VPN can help avoid this by encrypting traffic, making it harder for the ISP to determine the type of data being transmitted.

What is a proxy?

Proxy, which is known better as a proxy server, is an intermediate between the internet and a device. When a person requests a server or webpage, a proxy server forwards that request to its destination and helps an individual retrieve that information for them. With the help of proxies, internet traffic can be controlled, regional restrictions can be bypassed easily, and the privacy of an individual is maintained.

Types of proxy servers

Currently, different types of proxy servers are available. They include:

• HTTP Proxies: To handle web traffic, this is the right proxy server for your business. Businesses can also use these proxies to monitor and control how employees make use of the internet. However, HTTP proxies cannot be used to encrypt sensitive data.
• SOCKS Proxies: SOCKS proxies can handle a broader range of data types. Email and file transfers are handled with SOCKS proxy, although they lack encryption and are comparatively slower than HTTP proxy. 
• Transparent Proxies: These proxies do not hide the user’s IP address and are often used for filtering and monitoring internet traffic. Many businesses use transparent proxies to enforce internet usage policies or block specific websites. And not necessarily for the security of the business.

Benefits of proxy servers

There are so many benefits of proxy servers. It includes:

• Bandwidth Management: With the help of a plain proxy, businesses can manage and control their bandwidth usage easily. An example is when business owners block employees’ access to video streaming sites so that when they are working, internet performance can be optimized.
• Access Control: Proxy in business is favourable because access to specific websites or services can be blocked. This ensures that employees do not make use of company resources to work on anything that is not work-related.
• Content Filtering: Business owners have noticed over time how employees access non-work-related or inappropriate content. So, with proxy content filtering options, organizations can restrict or have control access to content on the internet.
• Anonymity: Proxies can hide your IP address, making it more challenging for websites to track your online activities. In comparison to the VPN anonymity feature, VPN is better than proxies.

VPN vs Proxy: Which is Better for Your Business Security?

Now we have understood the basics of VPNs and proxies, let’s investigate the difference between VPN and proxy to know comparatively which is better for your business: 

• Encryption and Security

When comparing VPNs and proxies in term of security VPNs are better for robust security. The data that are passed between the internet and users’ devices are kept encrypted. Proxies, on the other hand, do not have encryption features, which leaves data accessible and vulnerable to hijack. So, for businesses that deal with sensitive data and customer information, VPNs is the best option.

• Anonymity and Privacy

Both VPNs and proxies can mask a user’s IP address, offering a level of anonymity. VPNs offers businesses better privacy because traffic is encrypted so the online activities of an individual cannot be tracked in anyway. Proxies, on the flip side only makes provision for hiding the IP addresses of an individual without encrypting traffic which makes it possible for threat actors to still see your data.

• Performance and Speed

Since proxies do not encrypt data, they are generally faster than a VPN. If you are looking for speed, you should go with proxies. VPNs, on the other hand encrypt data but they considerably slow down the internet because of the encryption it runs. If you value encryption you have to deal with slow internet or VPN but if speed is your priority and you don’t need encryption, then proxies are for you.

• Cost and Scalability

For businesses on a low budget, proxies are a better option. However, their lower cost comes with a lack of encryption and security features that VPNs carry. VPNs are considerably more expensive than proxies because of their security features and permissibility allowing business owners to expand their secure network as they grow.

Conclusion

Both VPNs and proxies have their unique place in the world of business security. The best choice depends on your specific needs. If you are looking for remote access and encrypted connections, particularly on business data and sensitive information. A VPN is considered the right choice for you. However, if your goal is to maintain productivity at work and fast internet, a proxy can get the job done. So, with the right tool in place, you can help to secure your business online.