Cloud POS system vs. local POS system: the mass migration to the cloud

Retail and HoReCa are undergoing a systemic transformation: companies are rethinking what a checkout system should be and how to manage business operations in real time. While the standard used to be the “local software + on-site hardware” combination, today, more and more enterprises are switching to cloud POS systems, which ensure full remote control, scalability, and effective network management.

What appeared to be a technological innovation in 2018–2020 has transformed into a new operational standard by the late 2020s. The key argument for business has become the ability to manage a point of sale—or an entire chain—without the need to be in a specific physical location.

Global market data: cloud solutions are growing exponentially

The shift to cloud POS is confirmed by analytics from international research firms.

IMARC Group values the global cloud POS market at USD 5.11 billion in 2024, forecasting growth to USD 25.21 billion by 2033. For the segment, this means a Compound Annual Growth Rate (CAGR) of about 18.4%.

Straits Research offers an even more ambitious trajectory: from USD 7.73 billion in 2025 to USD 45.2 billion in 2033, with a significantly higher CAGR of approximately 24.7%.

The overall POS market (On-Premise + Cloud) is also growing:
According to Fortune Business Insights, its volume was approximately USD 33–34 billion in 2024, and is expected to exceed USD 110 billion by 2032–2033.

These figures demonstrate not just stable growth, but a rethinking of the entire architecture of operational management in trade and food service. Local systems are ceasing to meet new requirements for speed, reliability, and scalability.

Why cloud POS is displacing on-premise: key drivers of the transition

The transition to cloud POS is driven by a set of factors that impact the economics and operational efficiency of a business.

Scalability. This is the first and most obvious factor. Cloud solutions allow for opening new locations without complex IT procedures: there is no need to install servers, configure local databases, or purchase specialized computers. It is enough to connect a new workstation to the cloud system, after which the manager immediately gains access to sales, inventory, and analytics.

Reduced Infrastructure Costs. Local POS systems require hardware, separate software, regular updates, technical support, and often even in-house IT staff. Cloud POS completely eliminates these costs: the server side is hosted by the provider, and updates are performed automatically.

Real-Time Data Access. Sales figures, inventory levels, staff activity, revenue, and other key metrics are available from any device. This allows managers to make decisions quickly—especially in the dynamic environments of retail and HoReCa.

Security. Cloud systems have a significant advantage here. They are updated centrally, feature configured data encryption, and all critical processes are mirrored in data centers. Local POS solutions often lose out in this regard—untimely updates or hardware failures can cause downtime or even data loss.

Integrations. Modern business works with acquiring, delivery services, CRMs, warehouse management, loyalty programs, and analytical services. Cloud POS easily integrates with this entire ecosystem, forming a unified digital management contour.

Why even large chains are switching to the cloud

For large chain businesses, the question of efficiency becomes even more acute. Deploying a local POS infrastructure across dozens or hundreds of locations means:

• Maintaining equipment at every location;

• Administering separate databases;

• Manually updating software;

• Locally monitoring the stability of all components.

In the cloud model, all these procedures become redundant. Network management is centralized. Management gains the ability to see all locations on a single dashboard: sales, stock, assortment metrics, and staff efficiency are all updated online. A new location can be connected in a few minutes, and its data is immediately reflected in the general system.

This centralization reduces operational costs, accelerates the deployment of new objects, and ensures unified accounting standards across the entire network.

What risks exist and why they are no longer critical

Despite the rapid growth of cloud POS, businesses often ask questions regarding risks. The most common concern is dependence on the internet, security, and the stability of cloud servers.

However, most modern cloud solutions already offer technologies that eliminate these risks:

• offline mode: allows working even without the internet, synchronizing data to the server once the connection is restored.

• encryption: data encryption that meets banking standards.

• backups: ensuring information is not lost even in the event of technical failures.

• fault-tolerant data centers: utilizing geographical redundancy.

As a result, cloud POS systems are becoming no less reliable than local systems, and often—even more secure and stable.