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The evolution of technology is continuously opening up lots of new opportunities for each business that helps them grow in numerous ways.

Rather than using traditional ways, businesses are approaching new and modern methods. That way, traditional ways are waning from the market.

The point-of-sale system (POS), for instance, has been around the companies for many years, but adopting modern POS systems have seen unimaginable changes.

In the same line, cloud-based POS systems are replacing traditional point-of-sale systems. Cloud-based POS systems are proving to be more convenient and reliable.

When it comes to selecting the best of point-of-sale system for your business, it becomes quite a difficult task because there are several numbers of POS systems available. However, a sound POS system is an essential part of businesses, and this system has the potential to foster enterprises at a pace.

Irrespective of the business you own, you will need to set up the point-of-sale system to regulate your business operations. You need to choose the POS system that ultimately depends on the type of business you own.

If you are in confusion about what to choose – cloud-based or traditional, here is the post that helps you decide which point-of-sale system is better for your business.

Tradition POS System

‘On-premise’ or ‘Legacy’ are the other names of traditional point-of-sale-system.

Traditional POS system stores data on a local server and operates within an internal network. Simply put, this type of point-of-sale system works like a computer at your home place. The programs that run on your computer can only be used on the same computer. Also, the data will be saved on the local drive and cannot be accessed from anywhere else.

Why choose a traditional POS system

The traditional or on-premise point-of-sale system has numerous advantages. Let’s find out:

Larger display

A traditional point-of-sale system comes with a whole setup of hardware. This setup includes a terminal, barcode scanner,receipt printer, consumables, mounting solutions, cash register and more.

The system has a large display screen known as the terminal. This terminal allows employees to access the functionality of the system. Using this system smoothly provides stability in the business.

Traditional POS systems are mostly used in hospitals, supermarkets, malls, and more, for example.

Wide range of functions

A traditional point-of-sale system not just offers a bigger setup and display but an extensive range of services. These functions of the system make your business run smoothly and productively.

The system offers a bunch of distinct features, such as inventory management, accounting, data storage, low inventory notifications, high security, and so on.

With these features, businesses can keep up with their business operations and allow traditional POS systems to remain in the market for quite a long time.

Nothing is perfect, though. However, when it comes to the POS software system, something is missing that calls for disadvantages of a traditional POS system.

Find out the drawbacks of not using a traditional POS system:

No Mobility

A traditional POS system is deteriorating because of its lack of mobility.

If one wants to access the information and data, they need to be present at the terminal as this POS system does not have remote login functionality.

Higher Cost

As a traditional POS system comes with a whole set of hardware, implementing each one of them considerably increases the overall cost of setting up a traditional POS system into the business. Hence, small and medium enterprises generally do not prefer using this system.

Cloud-based POS system

The utilization of cloud-based technology becomes a new trend in the market.

‘Mobile POS’ or ‘Software as a Service POS (SaaS POS)’ are the other names of a cloud-based POS system.

A cloud-based point-of-sale system is a web-based service, and data is stored online instead of local storage. This system allows users to access their data from anywhere on the globe and at any time. However, they need to have an active internet connection to access their data.

Businesses, today, small or medium, are shifting their focus to the cloud-based point-of-sale system due to affordable pricing and numerous functionalities.

Why choose a cloud-based POS system

The cloud-based point-of-sale system serves numerous advantages. Let’s check out:


A cloud-based POS system allows users to access their information from remote locations. This is one of the most significant benefits of the cloud-based system.

The remote access of information makes it possible to stay in touch with your business, no matter where you are. All you need to have is an active internet connection. This way, you can handle all your business operations even when you are away from your store.

Higher accuracy rate

Businesses usually face a problem in terms of sales and inventory. Tracking inventory details often becomes difficult due to limited or no facilities. With no facilities, the productivity of business impacts due to lack of supply of goods and materials.

However, a cloud-based point-of-sale system keeps you updated on the inventory details. With such information, you can purchase more whenever the products are running low in quantity.


A cloud-based POS system comes as a subscription package at affordable prices. That way, businesses do not need to invest a lot in the point-of-sale system like the traditional POS system. The monthly bill includes the data backup and system upgrade charges.


If you are using POS devices in abundance, a cloud-based POS system allows you the freedom to increase or reduce the number of POS devices you generally use.

The scalability of the POS system doesn’t require additional hardware and helps you save some more money.


The security of the system is the foremost concern for every business because it can make or break your business flow.

While your data is stored on a different server, a cloud-based POS system allows the system to get backed up automatically from time to time. The system ensures the safety of your data, even if the system crashes or if you lose the device.

Business insights and better customer service

Both of the factors go hand in hand.

A cloud-based POS system allows you to scan items instantly. Additionally, it also tracks and records all the business transactions. The system also helps you keep a record of the purchase histories of the customers.

For example, when a customer enters your restaurant next time, you can quickly identify them and provide better services based on their previous orders.

Although the cloud-based POS system has many advantages, there are some disadvantages too with this system, that is as follows:

Dependency on the Internet

A cloud-based POS system is dependent on an internet connection and requires a constant connection to work smoothly. However, if you face unstable internet connection, you are running the risk of disrupted service. Moreover, all this might affect your sales.

Cannot be customized

A cloud-based POS system doesn’t have a room for customization as a traditional POS system. If we talk about small and medium-sized businesses, they don’t have much problem with this, but larger businesses can fall off.

The ending notes

Now that you know about the advantages and disadvantages of both cloud-based or traditional POS systems, and also their strengths and weaknesses, you need to make a wise decision.

A traditional POS system suits larger businesses as the system allows stability and hassle-free transactions at the checkout counter.

Contrary to the traditional POS system, a cloud-based POS system is more affordable for small and medium-sized businesses, like restaurants, cafes, retail stores, and more. Where there is a limit for initial investment, a cloud-based POS system works greatly.

The bottom line is that you need to know your business requirements and the budget you are willing to allocate to the POS system. This way, you can choose the best POS system for your business.

Wish A POS is a POS hardware company in Australia that can be an answer to all your questions. The company has an extensive range of point-of-sale hardware,including receipt printers, barcode scanners, cash registers, mounting solutions, POS bundles, and many more to handle all your precious business operations smoothly and effectively.


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