Why Cloud Point of Sale System is better than Traditional POS System

Why Cloud Point of Sale System is better than Traditional POS System

By: Retail CIO Outlook | Wednesday, February 06, 2019

In client-server POS systems merchants such as restaurants have devices for taking orders and processing payments, typically the huge terminals at the counter where a host stand. Most POS software communicates with inventory levels to keep things in balance. Now, Small retailers are shifting away from these traditional POS systems to the cloud-based point of sale solutions.

Cloud-based POS systems are a Software-as-a-Service (SaaS) is Web-hosted solutions that store data on remote servers and make information accessible online to its users. The cloud can be accessed remotely from everywhere.

Why customers are moving to cloud-based POS systems

Integrated Systems

Most of the customers are now looking only for fully integrated POS solutions that manage everything from online ordering to detailed financial reporting. A full-featured cloud-based POS system has the potential to support components of a business that would normally be served by four or five different vendors. Advanced SaaS systems also feature Customer relationship manager (CRM) for restaurants solutions that allow restaurateurs to use historical customer data in loyalty programs, online ordering, and email marketing.

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Data Accessibility

The data can be accessed, edited from anywhere with the internet as SaaS POS systems store data in the cloud. In the POS system, the manager needs to be on site to make changes to the data like the menu, to check employee logins, and food business status. The managers can view data in real-time because the data is stored online.


Most legacy POS systems require additional labor and time for software updates. The legacy systems are to be updated manually, so the POS software is only upgraded once a year. SaaS POS systems are centrally hosted, so the provider updates remotely. The bug fixes and new updates happen much frequently with cloud-based POS software than with client-server systems.

Cost Efficiency

Cloud-based POS systems are less expensive and require fewer upfront costs than client-server POS systems. Costs are usually low in cloud-based POS system because installation is less complex, maintenance can be performed remotely, and there are more affordable hardware options available.

Innovative Hardware

Mobile POS systems provide options for a restaurant to modernize their service. Unlike client-server POS systems, cloud-based POS systems can support mobile devices that can send orders to the kitchen and also storing the information in the cloud.

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