Cloud vs Local POS Systems. Which is Best for my Business?

Posted by: PosZit Comments: 0

Which one is best for my business and what are the differences between cloud and local point of sale systems. We mentioned some differences here.

Cloud vs Local POS system. Pros and cons of each

A POS system is a very essential tool for businesses, as all turnover, sales and other transactions are processed and stored. The data which is collected can be saved in a centralized server that is connected to each station locally, or can be completely in the cloud. When we differentiate cloud-based or local POS solutions so it has a number of advantages and disadvantages, and according to your business needs one may be a better option than the other.

Point of sale database:

POS systems consist of numerous components of both hardware and software which work in teams to allow cashiers to be able to complete sales for the customers at the cash counter. The hardware portion includes the desktop, LED, receipt printer, the cash drawer, receipt printer, barcode scanner, and many more. The software part helps to work the whole system.

The POS software contains a user interface that is shown on the screen and a database that resides on a local server and usually sent to a more centralized location. 

Differences between traditional POS System and Cloud-based POS:

One of the biggest differences between traditional POS and Cloud based is that each location has a back office server that the cash registers are connected to and this server is associated with the company’s data center and the main POS database. Collected data is transferred to the business software for processing.

But with cloud-based systems, nothing may be physically loaded onto any of the hardware that is used by the business. They are given an account on the software provider’s apps and it is there that everything is set up. All sales are stored and all of the processing is handled via cloud system.

Advantages of using a traditional POS system:

The conventional POS method has revolutionized how the retail sales market operates since it was first applied to the corporate community. Being able to handle a purchase order immediately when waiting for the buyer. A short list of the benefits of using a conventional POS method is given below.

  • All the data is under control
  • No internet connection is required
  • Performance may be good in some cases
  • Lower chance of losing data with proper security measures in place.
  • Good for the privacy-conscious if system is kept off the internet

As the device is locally housed in all respects, the data, hardware and atmosphere are managed. For retail shops and restaurants, this is a viable choice.

Disadvantage of using a traditional POS system:

While there are many positive reasons for adopting a conventional POS method for an organization running a retail store or restaurant, there are some drawbacks and might not only be slight drawbacks. Few derogatory points should be taken into consideration where a conventional POS system is used.

  • Costly custom software/hardware upgrades.
  • Additional hardware could be needed to retain inventory control.
  • For optimum security, adequate safety mechanisms must be created.
  • In case of a hard drive malfunction, a contingency strategy must be enforced.
  • You may need an Infrastructure Maintenance IT Squad.
  • Can’t be optimal if you have many areas where sync data are required

Some of the drawbacks of a conventional POS system are hard to ignore today , particularly when the cloud-based systems have their advantages. Free control includes external security controls that are required in order to function efficiently and optimally.

Advantages of using a Cloud-based POS system:

The newest technologies in the cloud have now made it very popular to provide many various enterprise facilities to experience the storage options on the Internet and the cloud. You and your company will benefit from these opportunities by building a cloud-based POS system.

  • Your data can be viewed anywhere and whenever.
  • Instant notifications and coordination in many places to enable business decisions quicker and more precise.
  • Less efficient technology can be used, so all work takes place on the cloud and The costs are reduced in exchange.
  • Can use other technologies like tablets and cell telephones that can function smoothly together.
  • Easier to expand as the market is extended.
  • Due to the simpler available details, multi-channel retail is smooth.
  • Completion and logistics procedures are streamlined.
  • Protection controls are in effect in order to deter privacy infringement by many existing cloud-based POS service providers.
  • Safer from incidents (fire, earthquakes, theft) and natural disasters as data is stored in a protected place in the data center.

Mobile technology today continues for many companies where space and infrastructure are involved, the Cloud-based approach is far more feasible. Furthermore, some cloud-based POS systems already provide additional modules such as e-commerce.

Disadvantages of using a Cloud-based POS system:

There is no ideal approach for something relating to technology that satisfies the need for an organization. The Internet is very easy to navigate. The drop. While it can be achieved as all, there are certain drawbacks you-have to take into account.

  • Continuous internet access is important. (Certain services have offline access)
  • Depending on the internet link output varies.
  • To use the facility, you must pay a monthly recurrent fee.
  • As all the files are accessible in the cloud, data infringements are probable.
  • Not all cloud-based sales point approach is the same. Health, reliability and redundancy of the data must be taken carefully into account.

The Internet is free and there are security vulnerabilities. This is much more important as a POS scheme will provide confidential consumer data and information for private companies. No device is ever insecure and data protection and secrecy is still a problem. Much when someone can physically access your business place and snatch confidential data from computers, they can be robbed by anyone on the internet.