Cloud-based computing has certainly become popular nowadays as its range of business applications broadens with each passing year. Moreover, frequent improvements in technology have made it even more powerful and reliable than ever.
Because of this, the cloud-based POS is becoming the new normal for most eCommerce and brick-and-mortar stores to sell goods and handle payments via electronic transactions. In addition, this online system is fast, convenient, and cost-effective, making it very beneficial to small business owners.
Yet despite the growing adaptation and the benefits that a cloud-based POS offers, there are still a large number of business owners who have doubts based on assumptions and misconceptions. Therefore, there is a need to debunk these falsehoods and set the record straight.
Cloud-Based POS is one of the various POS options available for business owners. This type of system utilizes an online cloud-service to run sophisticated point-of-sale software and process transactions. Unlike legacy POS where sales and store data are kept on an onsite server, cloud-based POS systems use the software-as-a-service model, which stores the transaction data on remote servers to make the records accessible from any internet-connected device such as tablets, smartphones and laptops.
Furthermore, it features an open web-based architecture that allows business owners to combine financial and management services into a single integrated solution that supports a wide range of retail operations.
Myth vs. Reality
There have been various misconceptions regarding cloud-based POS ranging from the difficulty of use to its reliability. Due to this misinformation, a number of business owners became reluctant to switch over from their legacy POS.
If you are still confused and wary of this online system, the following facts should convince you that cloud-based POS is the right fit for your business.
- A Cloud-Based POS System Is Difficult to Set-up
Many business owners who have experienced legacy POS know how much of a nightmare the entire installation process can be. From attaching POS terminals to the onsite server via cables to manually installing software into workstations, there are just too many things to be done. Most of these skeptics think that the cloud-based POS goes through the same arduous process and thus the misconception was conceived.
On the contrary, cloud-based POS systems are neither tethered to the onsite server nor expensive and bulky workstations since they’re totally reliant on the power of the internet. Instead, it makes use of tablets and other mobile devices like iPads, iPhones, and Android-based devices, making this modern system almost completely wireless which makes for easier installation; no more excessive cable management. This results in a cleaner, less cluttered counter.
2.Cloud Is an Unsecure Digital Platform
Many businesses are extremely worried about security breaches and having valuable customer and sales data compromised. Furthermore, with data breaches and hacking making news almost weekly, it’s easy to see why there may be skepticism about relying on remote servers.
However, there is no need to be worried since data is safer when it’s in the cloud. Here are security advantages you can get with cloud-based POS over traditional ones:
- Whenever information is entered into your cloud-based POS, it is immediately encrypted upon transfer, thus eliminating any risk of a data breach.
- Security patches are constantly being introduced via automatic updates which ensures that your important information is always protected from the latest cyberthreats.
Cloud-based POS devices can also be monitored constantly to detect rogue access points or suspicious activity.
- On the other hand, legacy POS systems are less secure since data is stored on a local server. Since the system needs to be manually updated onsite, security enhancements are fewer and less frequent – like once a year at most. This leaves the information vulnerable to the latest cyber attacks.
On the other hand, legacy POS systems are less secure since data is stored on a local server. Since the system needs to be manually updated onsite, security enhancements are fewer and less frequent – like once a year at most. This leaves the information vulnerable to the latest cyber attacks.
3.Cloud-Based POS Systems are Expensive
During the earlier days of cloud computing, this was considered true. But technology has gotten better since then and you no longer need to spend a fortune to have a fully functional cloud-based POS.
Businesses invest a considerable amount of money just to get traditional POS systems to work and remain functional. These costs include:
- On-premise hardware, such as servers and workstations
- Dedicated software
- Installation costs
- Security update costs
- Maintenance costs
- Employee training
On the contrary, with cloud-based POS systems, you don’t have to worry about spending that much. It basically reduces and even eliminates the need for an extensive IT infrastructure that is common with traditional setups.
As far as costs go, you only have to spend on the following:
- A monthly cloud POS subscription fee
- Internet-enabled POS equipment such as POS Touch PCs and barcode scanners.
- An internet subscription
With this huge reduction in expenses, it’s no wonder why small retailers favour cloud-based POS so much.
4.Transactions Are No Longer Possible If the Internet is Down
One of the biggest concerns regarding cloud computing is that the loss of internet connection will cause the system to crash or cease functioning. While this is generally true for most setups, cloud-based POS has back-up systems in place in the event that an internet outage does happen.
In order to deal with the possibility of a loss of internet connection, cloud-hybrid POS systems were introduced. These systems work by storing some of your cloud data on an external storage device and this allows them to perform offline transactions when required. Once internet connectivity is restored, all the data from the offline transactions, such as the total number of items sold and the number of bills punched will automatically sync with the database on the cloud.
5. Cloud-Based POS are Slower Because it Updates Over the Internet
This is another common misconception about cloud-based POS. The laggy, sluggish performance isn’t because of the system itself, but rather its connection to the internet. Opting for a faster, higher bandwidth connection will give your POS a significant boost in response time.
Alternatively, you can go for a cloud-hybrid POS system that can deliver excellent performance in spite of below-average internet speed.
6. Migrating Data From Legacy POS to Cloud-Based POS Is Difficult and Time-Consuming
Data migration from one local server to another has been a daunting task for Legacy POS owners, especially when there’s a change in management software. Aside from the entire process taking days before it can be functional, there’s a risk of the loss of important business information.
However, this is not the case when you decide to migrate to cloud-based POS. Most POS companies will assign a technician to either assist you with the migration or do everything for you. All you have to do is to provide them with all the information they need and in a few hours, all your data will be fully integrated into the cloud.
7.Cloud-Based POS Can Only be Accessed by the Main System
Some skeptics believe that the Cloud POS system only has a single access point. This means the online POS system can’t be used on multiple devices and is limited to a single location only.
This is nothing more than a misconception as the system can easily sync on multiple devices anytime, anywhere. This gives you the ability to manage data, perform transactions, and perform other retail related functions from different store locations and devices as long as they have the proper login credentials. Cloud-Based POS Has a Limited Functionality
Contrary to what skeptics believe, cloud-based POS systems are quite capable of performing various management, financial, and retail functions. Furthermore, you can freely customize the options available allowing you to decide which ones you need for your business and which ones you don’t.
Here are the various functions you can do with your cloud-based POS aside from transactions:
- Customer Management
- Vendor Management
- Process Payments
- Manage loyalty programs
Cloud computing is the future of business and cloud-based POS is one of the most intensive, cost-effective, and secure systems out there. This online system has features that can benefit your business greatly, so do not let misconceptions discourage you from making the switch.
For effective POS solutions for your business, call POSRG Canada at
+1905 332 8809. We’ll be happy to help you!