For the last few years, there has been an increase in the number of retail businesses making transition from traditional POS to cloud POS architecture thereby automating their entire business operations.
Not only are the large organizations, even small shops too are taking the advantage of cloud technology in augmenting their POS systems. While there are many reasons which can be attributed to this transition, there are four main reasons which drives retailers to adopt cloud POS today.
Low entry cost and less Cost of Ownership
With Software-as-a-Service (SaaS) becoming popular cloud delivery model among retailers, there is no over-head cost in buying the software license, installation and other incremental expenses. Instead, there is a moderate monthly subscription fee for POS software which includes rental for using the POS software, hosting charges and also development, maintenance, and upgrade services, accounting to less Total Cost of Ownership (TCO) expenditure for vendors.
According to a recent study by Hurwitz & Associates, a cloud POS can lower the TCO for POS software by up to 55 per cent.
Anytime and anywhere data access
One of the most popular advantages of Cloud POS is its accessibility. Vendors, wherever they are and whenever they want to, can access their sales information, inventory positions, labor usage analysis, productivity charts and other mission-critical information in real time and for multiple store locations. With Cloud POS, businesses can view all critical information about their store operations and also can study business analytical data using their mobile devices for successful business planning. In short, they will have enhanced and real time control of their entire operations 24X7.
As mentioned, the monthly subscription fee for SaaS includes automatic software upgrades, which, otherwise, has to be performed by the vendor. Cloud service operators can install upgrades on vendors’ system remotely thus eliminating the downtime (no loss of business and improve productivity) as well as last-minute rush to buy the upgraded version of the POS software.
Also, since cloud POS software services are hosted on a remote server, vendors need not have to invest heavily on hardware components, spend on recurring expenses such as maintenance and also avoid from looking for provisions to accommodate extra data storage space when your business propels with more volume of customers and inventory data.
Enhanced data security
With a cloud POS in place, vendors will not have the risk of losing data through breaches, hacking or virus attacks since all the data are stored in a secure data center which are dependable than the local server owned and maintained by vendors. Also, since the servers are positioned far away, they will not be affected by any physical damage or danger due to natural phenomenon such as floods, earthquakes or other reasons.
Vendors can relax and need not worry about data back-up or losing data and cost of reinstalling of system drivers due to power outages or hardware malfunction.
Enhance customer experience
Cloud POS can be more beneficial for providing enhanced customer experience as vendors can include hosts of features to serve customers even on the move. With Cloud POS, vendors can bill customers anywhere and anytime, provide e-bills to their mobile or email box, and enhance CRM initiatives. With tablets and mobile POS in hand which have cloud connectivity and advanced POS software applications, vendors can charm customers.
Cloud POS may not be ideal for everyone, but its benefits can make an option worth for exploring by retailers of all sizes and nature.