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When SWG is deployed transparently, it can't authenticate clients using the "HTTP 407 Proxy Authentication" method that it uses in explicit mode.Rather, it must use the same type of response that a web server would send "HTTP 401 Unauthorized".
In order to facilitate this, SWG redirects the traffic to a "virtual authentication hostname".
The virtual authentication hostname must resolve to an external IP so that SWG will have a chance to intercept the traffic and issue an authentication challenge.
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