Cloud-Based Point-of-Sale Systems vs. On-Site Point-of-Sale Systems
When it comes to selecting a point-of-sale (POS) system, businesses have two primary choices: cloud-based POS systems and on-site POS systems.
There are plenty of options available, and each comes with its own set of advantages and disadvantages. In this blog post, we will look at both options to help businesses choose the best one for their needs.
What is a Point-of-Sale System?
Before we dive into the comparison, it's important to define what a point-of-sale system is. A point-of-sale system is a software application that manages retail transactions. It typically includes inventory management, sales reporting, and customer management.
Cloud-Based Point-of-Sale Systems
Cloud-based point-of-sale systems are hosted in the cloud and accessible via the internet. These systems offer several benefits, including lower costs, automatic upgrades, and easier scalability.
One of the main advantages of cloud-based POS systems is that businesses can access them from anywhere with an internet connection. This feature helps businesses manage their operations from anywhere, making them ideal for businesses with multiple locations or remote workers.
Another benefit of cloud-based POS systems is that they typically offer monthly subscription pricing models, making them more affordable than on-site systems. Additionally, since cloud-based systems are managed and upgraded by the vendor on a regular basis, businesses don't have to worry about the cost of hardware upgrades.
On-Site Point-of-Sale Systems
On-site point-of-sale systems, also known as traditional POS systems, are installed on-site and run on the business's own hardware. These systems offer a higher level of security and customization but require more maintenance and upfront costs.
One of the main advantages of on-site POS systems is that they offer more control over the system's customization and security. Customizations can include things like integrating with other in-house systems, whereas security features include data backups and local data storage.
However, on-site POS systems require businesses to maintain their own hardware, which can be costly in the long run as hardware ages and must be replaced. Additionally, on-site POS systems are typically more expensive upfront than cloud-based systems.
Comparison
To summarize, cloud-based POS systems are more affordable, offer automatic upgrades, and are accessible from anywhere, while on-site POS systems offer more control and customization but come with higher upfront and maintenance costs.
In terms of market share, a study conducted by MarketsandMarkets predicts that the global cloud POS market size will grow from USD 1.01 Billion in 2016 to USD 3.73 Billion by 2021, while traditional POS systems are expected to decline in popularity.
Ultimately, the choice between a cloud-based and on-site POS system will depend on each business's specific needs, size, and budget.
References
- MarketsandMarkets. (2016). Cloud POS market worth 3.73 Billion USD by 2021. Retrieved from https://www.marketsandmarkets.com/PressReleases/cloud-pos.asp