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If you are a beginner and want to start a retail company in this technology era, you will need a suitable POS system. It helps you process all contemporary payment methods, manage your inventory, and, most importantly, record and store all transaction data. On-premise POS and Cloud-base POS are the two primary categories of POS software available today. Every type has advantages and disadvantages. All the advantages and disadvantages of these two varieties will be discuss in this post so you can make an inform choice.

What Is On-Premise POS?


On-premise POS, also known as conventional POS or legacy POS, is a sort of point-of-sale where all data is kept in a local database, more precisely on the hard drive of your computer. This means that you can only access it when you are using your computer and activating the drive.

What Pros and Cons Does It Offer?


The following are just a few of the standout benefits that on-premise POS systems may offer to businesses:

Independent of the Internet

POS systems that are installed locally do not depend upon the internet. Without the internet, the implant device still allows access to the system and data.

Paying Only Once

As the on-premise POS is only intend for your own firm, you just need to make a one-time payment for it. It becomes your asset with a one-time payment.

Many Features and Functions

Since that is your property, you are free to add and change whatever features or functions you see fit.


On-premise POS has a number of restrictions as well:

Implementation Is Pricey

The cost of implementation is expensive because you will require extra gear that works with the POS.

Insufficient Mobile Optimization

Because it does not depend on the internet, you cannot access it from anywhere; thus, if you want to conduct any transactions, you must be present at the terminal.

What Is a Cloud-Based POS?


The term “cloud” or “cloud-base POS” refers to POS software in which all the information and data are kept on a web server and are accessible from anywhere in the world via the Internet.

Which Pros and Cons Does it Offer?


For small and medium-size organizations, Cloud-base POS has a number of advantages, including:

Remote access

This is the most important advantage of cloud-base POS. You can connect to your computer and your data from any location around the world.

Synchronization in Real Time

The real-time synchronization function that cloud-base POS often provides allows for the automat real-time updating of all data online and offline. It is incredibly helpful for businesses that are seeking to operate many sales channels.

Security of Data

By using several techniques depending on various providers, all transactional data is routinely back up on the internet and protect on the cloud. You do not have to be concern about data loss if your equipment is lost or damage.


All owners of retail businesses aspire to their company’s growth and expansion. It also implies that, if necessary, the POS system may be expanded to accommodate growing businesses. Retailers can opt to ramp up the POS by using cloud-based POS, which is meant to be scalable so that it does not take a lot of time, effort, or money.

Business Insights

By keeping track of all transactions or sale histories, cloud-based POS enables you to access this data from any location at any time.

Efficiency in Terms of Costs

Since a hard drive is not required to keep the data, employing cloud-base POS can assist you in saving money in many other areas. As a result, you do not need to purchase any additional software since all cloud-based POS systems presently include a wide range of practical business tools.


Even with many benefits, there are also negatives to cloud-based POS, including the following:

Customization Is Not Possible

A Cloud-based POS system is challenging to customize because it is set up with preset features that depend on many vendors.

Reliance on the Internet

A reliable internet connection is necessary for cloud-based POS. You are unable to use your POS system offline. In addition, a shaky Internet connection can impede service.

Comparing On-Premises POS and Cloud-Based POS

We must look more closely at a few key aspects that are significant to the retail company in order to determine which is better:


Any browser can be use to access the cloud-based POS, which is manage by the vendor’s server. Only company servers and computers that are physically situated on the premises are capable of running on-premise POS.


In contrast to the on-premises solution, which is a one-time license that costs more upfront, cloud-based POS typically has a reduced monthly fee that you can continue to pay permanently. Because technology is always evolving, making a sizable upfront investment is riskier than making a monthly payment. Software is subject to rapid aging and evolution.


It is commonly assumed that on-premise POS is safer than cloud-based POS since the data is store on a distinct company hard drive. Yet in the modern era, cloud-based POS providers have already include several standards to boost data security, and it performs well. On the contrary, all of the data in On-premise POS is kept in a single location. Consequently, in the event of an emergency, such as a house fire or a data breach, nothing is going to be save.


Compare to on-premise POS, cloud-based POS is more accessible because it can be use from any location that has an internet connection. Also, cloud-based POS provides easy mobile access, which is significant in today’s society. Given all of those comparisons, it is clear that cloud-based POS outperforms on-premise POS for practically all retail enterprises in the present era of the mobile phone and the internet. More accessibility, greater value, and superior security are all provide by cloud-base POS.


Generally speaking, both cloud-base POS and on-premise POS offer benefits and drawbacks. Despite the fact that cloud-based POS is more spectacular and well-known, on-premise POS also offers its own advantages that are suite for specific business kinds who need their own personalize POS system. Depending on the sort of business, the demands, and the scale, retailers should carefully consider using a traditional POS system or a cloud-base POS system.

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