Cloud POS System vs Traditional POS – A Beneficial Comparison
Any bakery or for that matter any business that is considering investing in a point of sale system is faced with a dilemma. To buy a POS that is conventional or one that has cloud feature. Since installing a POS software is a pocket heavy decision that also requires many operational changes it becomes essential to make an informed decision. We hope to shed some light on how traditional POS vary from cloud POS. Furthermore, we elucidate the benefits of the latter and why it makes the most sense to invest in cloud technology.
What is a traditional POS software?
A pos software that stores information on local servers is called a traditional system. They are also termed as on-premise software or legacy system. Such point of sale processes run on an internal network that is closed, i.e., it cannot be accessed from outside. Meaning one can only get to the data from one device set in location. An elementary example of traditional software would be your office computer where all the recipes are stored.
What is a Cloud-Based POS Software?
Software that stores information on remote servers is called a cloud-based POS. They are also termed as:
- web-based POS
- Software-as-a-Service or SaaS POS
These are web-hosted solutions which allow data to be accessed from anywhere and at any time through the internet. An everyday example of Cloud-based POS is online banking. Every time a customer accesses their account through the internet, they reach the cloud.
The Benefits A Cloud POS System Renders A Business
- Web-hosted POS are the only systems that are fully integrated. It means using the software one can manage everything ranging from billing to taxes to financial reporting. A simple order can be made using the system, or complicated trends can be tracked through it. Unlike traditional POS it can keep track of many components that would otherwise need 5-6 vendors. If you utilize an advanced system like the one provided by Wondersoft, then you can even employ the CRM feature to retain customers and build lasting relationships.
- The one positive of SaaS retail POS systems that motivate most business owners to invest in it is the data accessibility. A conventional POS allows you to add, delete or change information from just one location. A cloud-based software, on the other hand, gives you more room. As long as you have an internet connection any device can be used to log-in the sales software. Think about it. A manager need not be at the bakery to ensure that new menu is uploaded or to keep an eye on employee check-in. As the bakery owner, you can know the stock levels right from your couch at home. Real-time data from anywhere in the world that is what POS systems based on cloud provides.
- A cloud POS doesn’t need dedicated time and labour once a year to update. Since these systems are hosted from one centre, they can be updated remotely using the internet. Most times there is zero disruption to the work of the end user. The update is seamless. Traditional POS must be updated manually. This means once a year an employee of the software company has to visit your bakery which translates to downtime. Furthermore, you have to pay the fee for the technician’s visit.
These were just regular updates. What happens when there are bugs in the software? With legacy POS you would need additional visits by the technician to solves the problems.
- A more practical positive of web-based POS software is the price tag attached to them. They are only marginally less expensive than legacy POS, but it is in the long run that saves money. Besides the upfront expense which is small because the installation is not complicated, the maintenance is mostly done remotely. This reduces the costs attached to problem resolutions and updates. When it comes to local servers the finances required to store the data can be exorbitant. It makes sense, therefore, to invest in SaaS POS software.
Though cloud POS is the clear winner, it should be borne in mind to install a system that is fit for your bakery. Wondersoft’s bakery management systems are offered in both varieties.