Traditional POS vs Cloud-based POS

The decision of choosing the right Point of Sale systems for your business is critical as it has a substantial impact on your business model. It is a long-term investment that can either make your business process smoother and flawless or make it even worse if chosen the wrong system.

In order to choose the right POS for your setup, it is important to read and know the particular needs of your business, so that you can pick the right SaaS. But before even that you must know that there are two kinds of POS, and each serves its purpose accordingly. The cost, customization, and services of the system are totally dependent on the size of your retail. Before that educate yourself with a little knowledge about the Traditional POS and Cloud-based POS and pick a suitable fit for your setup, accordingly.

POS Advantages

To understand them thoroughly we have listed any possible questions and differences between both systems.

What is the main difference between Traditional POS and Cloud-based POS?

The traditional POS, widely known as legacy POS, has its data stored in the local server which limits it to be accessed from any other place or device. The only way to retrieve the data is by the server itself.The Cloud-based POS is a mobile POS that stores all the data and information in the cloud (Online) which makes it accessible via the web. The internet connectivity allows you to connect with the online stored data of the business through any device, either PC, Mobile, or Tablet.

Data Loss

Traditional Systems are quite risky in terms of Data storage as saved on the closed internal network. There is a high risk of losing all of the data in case of a system crash or the presence of a bug.Whereas the data stored in Cloud-based POS is less threatened by the system crash, and bugs. Since all of the data is online and backed up automatically in the cloud, it still remains safe from any kind of miscellaneous activity.


Traditional SaaS requires a person to be in-house in order to have the access to the customer data or the stock details. You can only access the data via the connection terminals, placed inside the vicinity.But a Cloud-Based system allows you to access the data from any corner of the earth, as far as your device is connected with the internet.Cost The setup cost of a traditional POS system has a high cost. The continuous maintenance fee and the manual updates on the site make it a more expensive choice. The labor and equipment requirement adds up to all that cost, as well as the re-installation of the system in case of a system crash.The Cloud-based POS costs quite less in comparison to the traditional SaaS, as the installation is cheap and has little to no upfront cost. The system is charged on a monthly or yearly basis and does get updated automatically with the availability of customer service in case of any glitch or system crash.But the point to be noted here is that it totally depends on the size of your business, the number of connected devices, and customization requirements of the system, it all determines the actual cost of the POS.

Internet Requirement

The legacy POS does not require any internet connection as it has a closed internal network, so in the absence of internet, it works smoothly without any issue.The mobile POS cannot process without internet connectivity as it depends on the internet connection and its absence affects the performance of the service. Although, few of the systems have offline without disrupting your regular activities and syncs the data after the system gets its connectivity back.
System Integration
It is hard for the traditional systems to integrate new features and bring some customization and makes it difficult for the business to upgrade its process through the available POS.The Cloud-based SaaS makes it quite convenient for businesses to upgrade their systems and add new features with a wide option of customization and addons. It is automatically done by the service providers without making any deal out of it. This proficiency of the Cloud-based POS makes it more attractive and reliable as it forms the whole system in accordance with the needs of the business.

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