Difference between a Cloud-based restaurant POS vs On-Premise POS system


11 - Oct - 2019   Author- Nikita Rohira



With growing demand and importance of a POS system, it becomes essential to make an informed decision while selecting the right POS system for the restaurant.

Even many a times, you might be stuck with a question: Whether an on premise POS system is better or a cloud-based POS system.

Well, we hope to shed some light on how the two systems are different from one another through the points mentioned below.



On Premise/ Traditional:
Traditional POS systems operate within an internal network and thus comes along with a set of property that includes dedicated data server, backup servers, computers, backup drivers, and a huge space.
Hence, businesses with huge IT infrastructure or well established businesses looking for an on-premise module can benefit from it.
On-premise module requires IT team and experts for server maintenance.

Cloud Based:
On the other hand, cloud based POS can be purchased on a subscription basis - monthly, annually, etc.
The price of a cloud-based POS system could be more of an economic option as it's a service based, where you pay a monthly fee.
Up of that, the maintenance of the resources is looked upon by the POS provider.



On Premise/ Traditional:
Traditional POS systems doesn't rely on internet as the hardware and the servers are in a closed network, thus they work smoothly and efficiently without internet.

Cloud Based:
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 provide offline mode features that allows you to carry on the sales and the transactions offline and when the internet connection resumes, the data is automatically synced, but you would not be able to view your data for that period of time.



On Premise/ Traditional:
Being a closed network, data on on-premise system can be accessed from only one location.
Inspite of the accessibility downside, it is considered as a better option as your business will be responsible for the security of your on-premise server.

Cloud Based:
Cloud based systems store data online. Hence, it can be accessed from anywhere in the world.
Since the servers are maintained by technical experts, the data is more secure and you need to trust the security measures.



On Premise/ Traditional:
For traditional systems, updates are manually handled as the system is fixed at a place and most probably the updates are done once per year. So frequent updates is not a problem.
Talking about the features, on-premise modules comes along with a wide range of functionalities but adding new functionalities is difficult and time consuming.

Cloud Based:
With everything online, the cloud-based systems are automatically updated whenever a new change comes across.
Up of that with few easy clicks, you can add new plugins to the system.
New versions secure that you will have the latest trends and the best available tools all the time.



On Premise/ Traditional:
Traditional system comes along with a server and other components.
Though the maintenance, space and other factors, which are excluded in the primary investment could increase the cost a little bit more,
but overall on-premise module gives you a freedom and control over your data as you are not dependent on any ongoing service fees for hosting.
Organisations with on-premise module can buy perpetual license.

Cloud Based:
Cloud based POS are a subscription based service with little to no upfront cost.
Contrary to traditional systems, the maintenance and updates are automatically handled by the vendors with cost already included in the monthly fee.
However, the cost can vary based on your business size like the number of outlets etc.
Moreover, you don't own anything, once you decide to remove the plugin, you lose the overall data.



On Premise/ Traditional:
Integrating new modules, features and tools to a traditional system is a difficult task and is time consuming.
whereas, on-premise module can be customised extensively based on the business process. Thus it is suitable for enterprises with a huge budget.

Cloud Based:
Integrating a new module to a cloud based system is easy, effective and less time consuming as businesses don't need to worry about the network and the servers, etc.
In case of cloud, customization is limited.


Bottom line:
POS is a need of each and every business at present but choosing the right system could be confusing.
So while looking for a POS system, compare each and every feature of both the systems correctly and then select the one perfect for you!

Don't just think that cloud based is a trendy one so that would be better and don't simply consider a standard on -premise module to be out dated.

If you still need help to choose the best system, we at SingFNB can help you as we provide both On-Premise POS system as well as the Cloud-based POS system.

To learn about the POS system

To know about that solution,
Sign up for a free demo with SingFNB today!

For more details, contact us

Call Us on :- +65 6562 6050

Mail Us on :- [email protected]