Gina Obert
By Gina Obert on December 02, 2016

Cloud vs. Server POS System

Beginning your search for a point of sale system? It may seem like an easy decision at first glance, but once you begin your search, you’ll find that there are thousands of competitors and feature sets to sift through. To save you countless hours of arduous research, the first question you should ask yourself is, “Do I need a cloud or server-based POS system?”

Point of Sale System Data Storage

Cloud-based POS systems store data on a remote cloud service. This means that everything from security to data storage will be updated and saved daily through the cloud service. Choosing to go with a cloud-based POS system also provides owners with the ability to consolidate multiple locations and manage their business remotely. One major aspect to be noted when going with a cloud-based POS system is that, because the software is a service (i.e., you’re actually renting offsite server space), it does come with monthly fees on top of initial hardware costs. Fortunately, the initial hardware costs are typically lower than those found associated with server-based POS systems because of those monthly fees.

Alternatively, server-based POS systems, or local database systems, store data on a local server. These systems run on a closed internal network. The advantage of this traditional POS system is there are no monthly fees and you can maintain complete control of database input. Unlike cloud-based POS systems, server-based systems store their data on an internal server instead of a remote cloud server. This internal server might be the hard drive on the POS system or a separate computer used solely to house the POS system’s database. Consequently, when going with a server-based system, you want to make sure that you’re properly utilizing and maintaining your internal server. If not, you can easily run the risk of losing data on anything from sales to customer accounts if the server or hard drive is compromised for any reason (e.g., hard drive crash, fire, flood, theft, or power outage).

Choosing the Best POS Solution for Your Business

Having a better understanding of the differences between cloud and server-based POS systems is only the first step of the decision-making process. You now need to choose the one that you feel is best for your business type. Instead of taking the risk of misdiagnosing which system is the best fit for you and your business’ requirements, speak with a product specialist who has knowledge of your industry’s needs. Here at POS Nation, we have industry-trained specialists who can help match you with the best system for your needs. To get started, all you have to do is contact us at!


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Published by Gina Obert December 2, 2016
Gina Obert

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