VPN:
A VPN is only if you want to run GSA on a server. Hence it can run 24/7 and not use the resources on your computer.
Proxy:
A proxy is used so that you can have a different identity when you do your SEO shenanigans. These are important so you do not get your ISP banned from g00gle. There are a absolute must if you want to run GSA. I've been getting pretty good results using semi-dedicated proxies, they cost half as much as dedicated.
I think you got the two terms mixed up. Best to do your research before buying. Running on a VPS alone without proxies is not going to work.
A Proxy should be faster and you would be able to use it with many programs. A VPN on the other hand might slower since it keeps changing ips to adjust to the needs.
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