An increasing number of retailers have made a transition from traditional POS to cloud POS architecture. This includes not only large organisations, but smaller operations as well. While such change can be attributed to many catalysts, here are four of the main reasons why retailers are choosing retail cloud POS today:
Lower cost of entry, as well as a lower total cost of ownership (TCO)
A popular cloud delivery model today is Software-as-a-Service (SaaS). Retailers pay less at the outset for SaaS because there is no need to purchase a software license. Instead, retail POS software is available on a monthly subscription basis. Subscription rates vary depending on individual retailers’ needs, but most come at reasonable prices. The monthly subscription fee covers the use of the software, hosting services, as well as any maintenance, development and upgrades, leading to decreased TCO expenditures. According to a study by research firm Hurwitz & Associates, cloud POS solutions can reduce the TCO for POS software by up to 55 percent.
Cloud POS gives retailers anytime, anywhere access to data
From wherever in your operation you happen to be—or from any location with an internet connection—your retail cloud POS solution enables you to access sales information, inventory counts, labor use percentages, productivity reports and other mission-critical data in real time and for all stores. With Cloud POS, retailers’ POS software—and consequently, all of their data—can be viewed from mobile devices. This gives you enhanced control of your entire operation, 24 hours a day, seven days a week.
Smooth upgrade path
As stated above, monthly fees for SaaS include instant upgrades to the technology, which are performed by the vendor. Upgrades can be managed remotely and are delivered automatically, eliminating both downtime (along with the headaches and potential loss of business that accompany it) and last-minute scrambles to obtain an upgraded version of the POS software. Overall productivity is improved as well. Additionally, because cloud POS software is hosted on a remote server rather than in-store, there is no need to upgrade hardware or make provisions for additional data storage space as the volume of customer and inventory data in your system increases.
Enhanced data security
With a retail cloud POS solution in place, the risk of data loss from breaches and virus attacks is reduced because all data is stored in a secure data center. Such a center is far more secure than any data storage environment retailers might be able to maintain on their own. Reputable software providers work with security solutions providers to ensure the integrity of all data in their care.
Cloud POS systems also allow for the use of advanced security measures, such as encryption, to protect data from viruses and breaches. And as a bonus, there is no need to worry about backing up or losing data. Retailers do not incur the cost of reinstalling system drivers should there be a power outage or hardware malfunction.
Cloud POS isn’t for everybody. However, its benefits make it an option worth exploring by retailers of all sizes.
Contact us to discuss your systems strategy and what cloud could do for your business.