Pearl Echo is not a proxy server.  Internet traffic will flow via the path that it normally does when Pearl Echo is not installed.  The Pearl Echo workstation agent resident on an endpoint will only “echo” back data necessary for reporting; it also periodically gathers Internet access rules set for the user at the Pearl Echo server.
 
As an example of overhead, CNN.com will deliver over 10.5MB in content and images from their web page.  Pearl Echo will log 9800 bytes to the Pearl Echo server.  That’s less than 0.09% overhead!  This is described pictorially in this video.