Risks Involved in Using Traditional POS Systems
Point of Sale (POS) systems allow retailers to keep account of their revenue, stock, and cash flow, as well as avoid the restrictions of traditional transactions and stock management manually. However, all POS systems, especially conventional or legacy POS systems are not connected to the internet. Instead, they keep the data they acquire on servers that exist in the location where the firms exist.
Your POS does not need to be connected to the internet, but if your POS system fails to synchronise its data to the cloud, you have a lot to worry about. When you overlook to employ an internet-connected technology, you expose your firm to the following risks:
1. Lack of Updates:
One of the numerous disadvantages of using conventional or legacy POS systems that lack internet connectivity is that your data will not be updated.
The Cost of Not Having Internet:
Running a POS system on physical servers costs you a lot for real-time data updating. Furthermore, these upgrades are performed on a regular basis, which means you must use the system for months, if not more than a year before it can be updated.
By using a cloud-based POS system, users can get updates immediately as their software provider releases them. The fact that these updates are completely free implies that they will not be a recurring expense for you.
2. Data Centre Vulnerabilities and Drawbacks:
Legacy POS systems must contend with data storage issues in server rooms. These data centres, like any other sort of warehouse, are vulnerable to several typical dangers.
Prevent Fire Damage:
Fire destroys objects that exist at the time of the fire, in traditional POS system servers.
Prevent Flooding Damages:
Flooding can entirely damage the servers that store data obtained from a traditional POS system. This can utterly disrupt the firm since vital product and sales data is lost. Contemporary cloud-based POS systems are entirely resistant to this risk because all critical data is kept in the cloud.
4. Higher Failure Risks as a Result of Further Operational Costs:
It is critical to monitor your company’s finances to minimize unnecessary spending, and this begins with selecting a current POS system that will be relevant in the future.
Wasting Time with an Outdated POS:
The cost of establishing a legacy POS system, as well as the expense of maintaining these systems, can be significant. As a result, you are more inclined to postpone necessary maintenance work until afterward due to the financial consequences for your company.
4. Data Security Threats:
When a typical POS system fails, every record is potentially lost. A single error made by anyone with system authorization could result in the full loss of all information stored on the POS system’s servers.
Other security threats can arise because of technical faults inside the system or the loss of servers or information-storing gear. Furthermore, a viral attack can cause the entire system to crash. This information can readily be obtained by outside parties and used against your firm.
5. Risks of Inaccessibility:
For accessing data in traditional systems, you must be present in the office or where data is kept physically.
This is obviously a major annoyance that a cloud-based POS system completely avoids. The information stored in such systems can also become completely unreachable if you are unable to get to the business operation. In cloud-based POS you can access your data from anywhere easily and you can give data access to trusted employees.
6. System Incompatibility Implications:
Some older POS systems have a bad reputation for only functioning with the hardware provided by the vendor. Even if you have been with a particular vendor for years, they might make significant modifications to their systems and require you to buy new gear that is compatible with their recently updated POS software. You can reduce the cost of hardware by using POS systems connected to internet.
So, if you are still using traditional POS system, it is time to update to cloud based POS system for all the benefits discussed above.