Proxies reside between clients and servers, acting as an intermediary for transactions.  Proxies enable a number of roles, from filtering and monitoring to load balancing and anonymising.  The question is not IF you need a proxy, but rather what kind of proxy is needed?  It is important to choose a suitable, scalable proxy and to design, configure, and manage it correctly.  Otherwise, it creates more problems than solved.  Forward proxies control outbound connections while reverse proxies manage inbound connections such as load balancing a server farm.  Even your firewall with NAT is a proxy, working at a lower network layer.

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