To identify which one is better, we have to take a closer look into some important features that affect retail business:
The cloud POS is hosted by the vendor’s server and can be accessed via any browser. On-premise POS is only available on company computers and servers that are physically located on the premises.
The cloud POS usually has a lower monthly subscription that you may continue to pay indefinitely, whereas the on-premise alternative is a one-time license that costs more upfront. It is riskier to invest a significant sum of money in advance than pay monthly because the technology changes and upgrades every day. The software may evolve and age quickly.
It is a common thought that the On-premise POS is more secure than the cloud POS because the data is stored in a separate company hard drive. However, nowadays, cloud POS suppliers have already added some standards to increase data security and it works well. On the other hand, all data in On-premise POS is stored in one place. So in case of an emergency (housefire, data breach, etc), nothing will be saved.
Cloud POS gives more accessibility than on-premise POS since you can access it anywhere with the internet. In addition, cloud POS also offers seamless mobile access which is quite important in today’s world.
With all those comparisons, Cloud POS gives more benefits to almost all retail businesses over on-premise POS in the context of the modern world with the rise of the Internet and mobile devices. Cloud POS offers more accessibility, better pricing, and high security.
Besides, data from some recent surveys also show that Cloud POS is more widely chosen by retail businesses. According to financesonline.com, 61% of quick-service restaurants in the US used cloud POS(Pymnts, 2018) and 60% of new retailers are asking for cloud POS rather than traditional POS(Reforming Retail, 2018). Following data from Forbes, 61% of merchants are considering a cloud POS system for their business (Forbes, 2018). In addition, Cloud POS adoption is predicted to increase by 50% before the end of 2021((Reforming Retail, 2018).