Dedicated vs Shared Datacenter Proxies: The Differences

A datacenter proxy is one where the available IP addresses of the proxy are from datacenters. For this reason, the anonymity obtained from such a proxy is relatively more detectable than that of residential proxies.

That said, within this proxy category, there are still two uniquely different types: the dedicated datacenter proxy and the shared datacenter proxy. Both have all of the flaws of the datacenter proxy but possess individual nuances that set them apart.

Read on to learn how dedicated and shared datacenter proxies differ and business use cases where appropriate. You just might learn why businesses and individuals want to buy dedicated proxies.


Differences between dedicated and shared datacenter proxies

Here are some of the differences that separate shared and datacenter proxies:

  • This is the reason users buy dedicated proxies. A dedicated proxy is only available to the user who purchased it. As such, the business or individual employing the proxy address enjoys all the benefits of a proxy, with the added factor that no one else shares the address with them. The same holds for a dedicated datacenter proxy. However, a shared datacenter proxy lacks this exclusivity, allowing multiple customers of the proxy provider to use the addresses simultaneously.
  • Speed. Datacenter proxies are notably faster than residential proxies, thanks to the high-speed internet connection of the datacenter hosting it. A dedicated datacenter proxy would be even faster than shared proxies because of its exclusivity. The shared datacenter proxy, on the other hand, may vary in speed depending on the number of users sharing it.
  • Latency time. The same exclusivity difference that affects the speed can also affect the latency times. Due to the sharing of proxies, shared datacenter proxies might have varying latencies, unlike dedicated ones with only a single user.
  • There is a price for privacy and dedicated locations with proxies. As such, the shared datacenter proxies are more affordable than the dedicated datacenter proxies. That said, the dedicated datacenter proxies are, in turn, more affordable than the dedicated residential ones.
  • Customization. Dedicated datacenter proxies allow for more customization choices than are available to users of shared datacenter proxies. That said, shared datacenter proxies might still have some customization options. The ability to readily customize the proxy settings is another reason businesses acquire dedicated proxies.

Possible business use cases of dedicated and shared datacenter proxies

No better example showcases the difference in functionality of dedicated and shared datacenter proxies more than their use in business-related operations. Therefore, here are some business use cases of both proxy types:

  • Dedicated datacenter proxies are perfect for private communication. However, any type of proxy can hide the identity of parties communicating with one another. A user that buys a dedicated proxy for the purpose has the benefit of maintaining a completely secure connection.
  • Thanks to the cheap nature of the proxy type and the limited server load generated during casual browsing, shared datacenter proxies are perfect for obscuring the identity while a user surfs the internet. They are moderately anonymous, reliable, fast enough, and cheaper than dedicated datacenter proxies.
  • The latency and loading speed of dedicated datacenter proxies makes them the natural choice for real-time data collection. Such real-time data monitoring and extraction could be critical in online auctions or analysis of financial markets where price changes occur rapidly.
  • Shared datacenter proxies are ideal for managing social media accounts. It would allow businesses with multiple social media profiles across several platforms to seamlessly manage their activity. Furthermore, social media platforms are not as strict about IP bans and the seeming hopping from location to location, with changing proxy addresses, is likely to be as much of a red flag.
  • Dedicated datacenter proxies are helpful in quantitative trading in financial markets. Quantitative trading uses mathematical models, number crunching, and algorithms to identify opportunities in the market. The speed of a dedicated proxy is excellent for executing the opportunities that come.
  • A shared datacenter proxy can be the tool for small and medium-sized businesses looking to conduct light market research with little scraping. Such enterprises do not need the added speed and scalability of dedicated datacenter proxies. The speed and scalability, however, become good if such enterprises change strategy and begin to look at growing their business. A dedicated datacenter proxy can help load test online stores, websites, applications, etc.

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Businesses that buy dedicated proxies have more need for speed, reliability, and scalability than those who opt for shared proxies. The same logic holds for dedicated and shared datacenter proxies. In fact, a shared datacenter proxy may be a tool for an individual casually browsing the web in most scenarios.

That said, the differences between both proxy types indicate that rushing to get dedicated proxies is not always a financially savvy move. Sometimes, taking a step back to consider your business objectives before purchasing can save you years in underutilized resources and subscriptions.

By lucija

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