Nowadays, any business needs to have a website and an online presence in general. However, one aspect that no businesses should neglect is the security of their databases, especially when connecting to the internet. This is why using proxies is a must for businesses.

However, there are different types of proxies, and for businesses who are budget-conscious, they are more likely to consider shared proxies for their needs. While shared proxies can help reduce the costs, businesses should think twice before using them.

proxy business

illustration by Danila van den Hoeven

This article explains why businesses should avoid shared proxies and what are the main differences between dedicated IP vs shared IP.

What is a proxy?

Before diving into the reasons why businesses should avoid shared proxies, let’s first discuss what a proxy is.

Proxies are servers that serve as the intermediary between you and the site you want to visit. Instead of you connecting directly to the site, your request will be redirected to the proxy server and it will forward the web request for you.

It acts as both a web filter and firewall, allowing you to remain safe while browsing the web. It can help protect your sensitive data from potential threats on the internet.

There are several types of proxies you can choose from, and each has its own merits and disadvantages. You just have to choose which one works best for your needs as a business and web user.

Why are shared proxies not ideal for businesses?

As the name suggests, shared proxies are the type of proxy servers that are shared by multiple users and are used by said users simultaneously. They don’t offer exclusivity because multiple users are using the same IP address.

While shared proxies offer a more cost-effective option for web users, they’re not typically ideal for businesses. There are many reasons for this such as:

  • Security Risks

Because you’re sharing the same server with other users, there’s the potential for security risks, potentially compromising your company’s sensitive information like financial and personal information.

Moreover, there’s less control over shared proxies, so it can be difficult to impose enhanced security protocols. Sharing a proxy server can also make it difficult to trace back the malicious activity, preventing you from identifying the threat.

  • Reduced Speed

Sharing a network with other users can overload the bandwidth, making the connection slower and more frustrating for web users. When it comes to businesses or any type of online activity, speed is one of the most important factors, especially if you want to keep your audience’s attention.

  • Inability to Choose Your Neighbors

With shared proxies, you don’t have the luxury of choosing who you get to share the proxy server with. Because of this, all users of the shared network will suffer when one misuses it.

This is particularly true if they engage in suspicious or illegal online activities. It will be difficult to trace who engaged in such, making everyone on the network liable.

Also, as you might understand, using shared proxies might be an issue, especially if you're using them for important tasks. Other users can block the entire IP address. In this case, you wouldn't be able to use them anymore. With dedicated proxies, you won't face any problems regarding this situation because only you have full control of them.

Why are dedicated proxies more suitable for businesses?

If you’re running a business, a dedicated proxy server would be better for your needs. Dedicated proxies are only assigned to one user at a time. This is the reason why these proxies provide enhanced security, faster speeds, and exclusivity that allows for better anonymity while online.

You should note that usually, dedicated proxies are more expensive than shared proxies. To put it simply, imagine buying food for a party alone or sharing an amount spent on snacks with friends. Of course, you would spend less money when more people are buying the same thing together, right? It’s the same with dedicated proxies. They are more expensive because you have to cover the full costs of this proxy alone.

Suppose you’re looking for more reasons why you should invest in dedicated proxies rather than shared proxies for your business. In that case, we suggest you check out Oxylabs` article about dedicated IP vs shared IP for more information.


Businesses have different needs from individual users, and this also applies to what kind of proxy server they need. Shared proxies may offer a more affordable option, but the affordability can mean compromising some of the more important features needed by businesses.

Dedicated proxies are a better option for businesses. While they’re certainly not cheap, they do offer enhanced features that shared proxies just do not have.


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