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NxFilter is a free DNS filter designed for enterprise environment. Deploying this application is quite easy; you just need to setup your DHCP server using NxFilter as the DNS server for your network. Then your users will use NxFilter as their DNS server and they will be under filtering. Forcing filtering to users is also possible.
Since it uses light weight DNS protocol there is no need to have your traffic going through anywhere. Hence, you get no latency problem with NxFilter.