Abstract: A proxy server connected to a local network. The proxy server receives an instant message which was sent from a first-end user who is also connected to the local network. This message is associated with an instant messaging service which, in turn, is supported supported by a back-end instant messaging server. The proxy server determines whether the second end-user, to whom the message is intended, is connected to the local network. In the event that the second end-user is connected to the local network, the proxy server directs the instant message to the second end-user solely within the local network while bypassing the remote network and the instant messaging server. Also disclosed is a method for enhancing instant messaging functionality using a proxy server.