It depends on your needs. There are four main considerations.
Our GeoIP2 Precision: City and Insights services accurately geolocate 2% more IPs to cities and 5% more IPs to postal codes in the United States than the GeoIP2 and GeoIP Legacy downloadable databases.
Our GeoIP2 Precision services have had 99.99% uptime since January 2010 and respond quickly, but with a local copy of the database you are not dependent on the availability of our servers or a specific network route. Also, you can perform many more queries per second with a local database.
You need to download GeoIP2 databases yourself in order to have access to the latest and most accurate GeoIP2 data. With the GeoIP2 Precision services, you always receive the latest data available.
Once you have purchased a license to a downloadable database, there is no limit on the number of queries you can perform on that database. Based on the number of queries you are doing per month, you may find that either the downloadable databases or the GeoIP2 Precision services are less expensive.