When it comes to choosing a good Point of Sale (POS) system, it can be great stress because it's a one-time thing. If your point-of-sale system has been in place for more than 5 years, chances are you have a traditional POS system in your restaurant or retail business. However, the POS industry has undergone some notable changes over the last several years with the evolution of cloud-based POS systems, which now offer convenient iOS and Android options in place of traditional systems.
We want to ensure our clients are educated in order to make the best choice for their company — both today and in the future.
Not sure what the difference is and which is better? Let us help you!
Traditional POS
A traditional POS, also known as legacy POS, runs on closed networks and the data is stored on local servers. A simple analogy of this is storing your business data only on your computer cannot be accessed from anywhere else.
Cloud POS
Cloud POS systems are web-based SaaS (Software as a Service) solutions that store data in the cloud, which refers to a server in a remote location. These systems allow information to be accessed in real-time from anywhere in the world, which is invaluable for business owners.
Comparison
Traditional
Cloud
Data Accessibility
Traditional
The data can only be accessed on-site, meaning that the owner or manager has to be physically present in their business facility to make any changes to the menu or items, to check employee clock-ins, to see sales report, etc.
Cloud
The data can be accessed from anywhere, anytime. The owner or manager can monitor all of the reporting in real-time from anywhere with internet access using any device (a desktop, tablet, mobile, or laptop). They can also make any changes online, giving remote accessibility and eliminating the need to be there in person to do everything.
Data Loss Risk
Traditional
Since all the data is stored on local servers and runs on a closed internal network, there is a risk of losing everything if the system crashes or encounters a bug.
Cloud
Since all the data is stored online on remote servers, the risk of losing data is minimized. Even if the system crashes, the data remains safe because they are backed up automatically in the cloud, and can be restored easily.
Cost
Traditional
Traditional POS systems usually have high upfront costs. They also require a maintenance fee because the software needs to be updated manually on-site, which requires additional labor and time. Also, in case the system crashes, the cost of re-installation can be expensive.
Cloud
Cloud-based POS systems are generally more affordable due to simple installation and a subscription-based model with little to no upfront cost. Pricing varies depending on business size, and many providers include automatic updates in the subscription fee.
Some cloud-based POS apps are even free, with optional paid add-ons. In most cases, businesses mainly pay for hardware like devices, scanners, cash drawers, and printers.
Frequent Updates
Traditional
For many traditional systems, the server needs to be updated manually on-site, which results in fewer updates (often once a year at most).
Cloud
There is no longer a need for on-site visits to update your point-of-sale system with the latest version. Traditional POS systems require onsite labor to manually update the system's server, which results in fewer updates at an increased cost. Cloud POS systems update in real-time, which eliminates upgrade costs and ensures you are always utilizing the current version of the software
Internet Dependency
Traditional
Traditional systems do not rely on the internet, so even if there is no internet, it can continue to run smoothly and efficiently without affecting the service.
Cloud
Contrary to the traditional systems, cloud-based systems are heavily dependent on the internet, so if the internet connection is poor or lost, this can affect the service greatly. However, some cloud-based systems have offline capabilities, allowing you to continue to make sales and run the business as usual even without the internet. The data can be synced later when it is connected to the internet again.
Hardware
Traditional
The hardware of the traditional system is usually quite big, bulky, and heavy. The most common size of the traditional POS screen is 15 inches. Some people see this as an advantage because it prevents theft, but many see it as a disadvantage as it is not portable.
Cloud
Cloud-based POS, unlike traditional POS, uses portable devices, such as tablets and mobile phones. This makes it easier to carry it around anywhere. However, some devices may have short battery life and must be constantly connected to the charger.
Integrated Systems
Traditional
For traditional POS systems, it is often difficult to integrate new modules, and features, and updates. This makes it harder to customize the system, and the business has to use it as is.
Cloud
With the cloud-based POS system, it is possible to fully integrate higher functionality modules and connect with third-party software programs to customize the POS according to the business's needs. These modules include loyalty programs, online ordering, CRM, inventory management, accounting, and many more.
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