Comparisons between Traditional and Cloud POS


Centralising your restaurant's operation, tracking and inventory management through an efficient POS system can make a real difference in how your business is run. It can add a layer of seamless integration to your operations and yet, with the large number of options around, many businesses may not know how to go about choosing the right kind of POS system that suits their unique preferences and requirements.

Essentially, two types of point of sale systems can be found- Traditional and Cloud-based and while they are both highly capable of making a major difference in the managing of processes, tracking of transactions and handling of inventory (among other things), there's still the element of compatibility involved in which one you decide to choose.

Your restaurant's needs are unique and this means that selecting the right POS system could be the defining factor between strengthening your bottom line and having your employees quit because of the complications you've just introduced. To help you decide what’s best for your needs, here are some of the main differences between traditional and cloud POS systems.

The convenient choice

Cloud Computing, Network, Internet

Commonly known as "legacy" or "on-premise" POS systems, traditional systems are stay-put options that have dominated the industry for a long time now. You've probably come across a traditional POS system if you've worked in a cafe or restaurant before. They typically run on their own internal network which requires no internet and data is stored locally.

Cloud-based restaurant POS systems, on the other hand, rely on SaaS (software as a service) similar to Google Docs . With SaaS, information is stored online and can be accessed from virtually anywhere. This makes it different from a traditional system that requires you to be in your restaurant every time you require access. Similar to storing documents on your Google drive instead of on your desktop, the cloud-based POS can offer more convenience and increase efficiency/productivity in the process.

A matter of security

On that same note, traditional POS systems utilise closed networks that don’t typically have a connection to the Internet. Because of this, there’s an added sense of security compared to cloud-based restaurant POS systems which grant accessibility online.

Opting for traditional systems can mean a massive trade-off with convenience as you won't be able to remotely access a traditional system. You'll have to enter the premises and access whatever data is stored there. On the other hand, cloud-based POS systems offer data security in the form of automatic backups of all transaction information. This ensures that data is safely stored even in the event of a system crash or device loss. So, you should expect to have to choose between protecting your data from malicious attacks and backing up your data efficiently online.

What about costs?

In general, traditional POS systems tend to be more expensive in the long run. Buying all the necessary technology to get a cloud-based POS system off the ground may seem like a pretty steep investment at first but take note. They tend to have cheaper operating costs (especially when compared over time).

Level of functionality

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Holistic cloud-based point of sale systems sport functionalities that encompass CRM and inventory management, with capabilities that help users track daily sales transactions (and sometimes even customer profiles). As an added feature, some cloud-based systems can even offer a precise purchase trends analysis to help you plot decisions based on real data every step of the way.

Need more personalised system settings? Cloud-based systems have the ability to cater to different variables like the size of your restaurant's layout or customisable order processes that can either be shortened or expanded.

Traditional system features may not be as fancy but you could find perks that are worth considering. Legacy systems do not appear to be going away anytime soon, as they offer businesses simple and distinct benefits that include the basics such as inventory management, accounting and data storage. Also, there's still a large appeal for the apparent security it provides.

Opting for flexibility

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How often do you foresee your restaurant’s needs changing over time? If you think that your current infrastructure will remain relatively stable, then a legacy system could be just fine. However, if you’re anticipating uncertainty in the near future, with twists and turns in how your business will be run, you might just find that cloud-based systems offer adaptability as part of their framework. Maybe you’re planning for a more dynamic menu that’s constantly being updated or maybe you intend to brush up on inventory tracking processes. Either way, opting for a cloud-based POS can enable flexibility at the core of your business model. 

At Egulen POS, you can choose from three different types of POS systems: myRestaurant, myCafe and myKiosk. We support multi-outlet, self-order and more. 

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