Proxy servers that encapsulate communication with enterprise applications can add security aspects, such as encrypting the communication. Web proxy servers, for example, support TLS encryption over HTTPS.

The question is whether engineers want to make a difference between network, internal and external communication. Communication in an intranet network is often unencrypted. Depending on the nature of the exchanged information, internet communication should, in most cases, be encrypted.

Proxy servers can be used to terminate the encryption at the network boundaries, so-called TLS termination. The proxy server encrypts all outgoing information and decrypts all incoming information, respectively.

It's equally possible to re-encrypt the communication using different certificates for different networks.