CLOUD SOFTWARE VS ON-PREMISE SOFTWARE: THE DIFFERENCES BETWEEN THE TWO
When it comes to investing in retail management software for your business, it’s important to know there are two types to choose from; cloud based software and on-premise software. It’s essential for you to understand the differences between the two and which is better for your business. To give you a brief understanding of what they are, the two can be defined simply as the following;
Cloud based software: This software can be accessed via a web browser i.e. google, Internet Explorer or Mozilla Firefox, and is hosted on the software company’s server.
On-premise software: This software is installed locally on a server at your premises.
Now that we have the basis of what exactly each software model is, it’s now time to understand what are the differences between the two types of software models and get an understanding of what is better for your business.
CLOUD BASED SOFTWARE
Cloud based software is quickly becoming the favorite among retailers as the percentage of people adopting cloud based software is increasing at a growing rate. It’s the cheaper option compared to on-premise software as there is no capital cost to your business, and you are not paying a staggering fee from the outset of your purchase. Instead, you are paying for the software on a monthly subscription basis which suits most retailers. Retailers find cloud software as a stable and flexible model because all you need is internet access and from there, you can access the system anywhere, any place, anytime. So whether you are in your retail shop, at home, or on holiday, you can access your system with a click of a button. It can also be easily accessible on several devices such as PCs, laptops, iPads, or smartphones which can be handy when you’re on the go. Your data is stored with your software company on the cloud and in a data center so your data is very safe and secure. And your software provider ensures that you receive full support whether it’s on-site or remotely. Software companies may also have extra security protection when it comes to securing your data from hackers, and are more likely to fix bugs and maintain a strong firewall against potential hackers. The software company is responsible for updates, maintenance, and the implementation process of the system so takes the pressure off you compared to if it was on-premise software.
Some retailers like the security of knowing they have full control over the software from their premises. On-premise software means the software is installed locally at your premises and on a server, however having on-premise software comes at a cost. Usually, the software is priced at a once-off initial capital cost, which sometimes may be a lot of investment for retailers. It is not internet dependent which means it does not depend on internet access to run the software, but this depends on how many stores you have. For example, if you have one store, you can access the software on your server, but if you have multiple stores, you will need internet access to remotely connect to your server that is located in your first store. You have control of the software i.e. the implementation process and the development and updates, so you are the one managing your system. This also means that if your data is lost or not backed up, you are responsible for this, unless you have an agreement made with your software provider to do the backups for you. As well as that, you also have control of the data security, so it’s best to ensure you have a secure site so no hackers can access your data.
WHICH SOFTWARE TYPE IS BETTER?
Now that we have looked at both types of software, you can see they are both quite different in what they offer. But now the question for you is which one is better for your business? It’s not as easy as someone telling you the answer; you have to figure out what are your needs and what you want to gain from a software system. If you are tech-savvy and want full control over your software, the on-premise model may suit you. But if you want a reliable software model that is secure, less expensive, and maintained and managed by your software provider, the cloud-based model may be your choice.
Once you’ve figured out which one is better for you; the next question is what software companies offer cloud-based and on-premise. Ordorite Software offers furniture retailers a complete retail management software solution both as cloud based or on-premise. The majority of our customers opt for the cloud-based option as it is less of a capital cost to your business and it’s the more favoured software model at the moment. As a software, we provide modules for sales, purchasing, CRM, delivery and logistics, production and shipping, point of sale, and management reporting, to provide an all-in-one software solution to help you:
- Provide live stock across all stores, both online and brick-and-mortar
- Integrate online and in-store sales
- Advanced algorithms to improve purchasing and stock management
- Streamline the customer experience and reduce operational costs
- Enable target marketing by harnessing customer data
To find out more about our software, or simply to get some more advice on cloud based and on-premise software, and other departments in your business, or to schedule an online demo and consultation with us, click the link below!