POS systems that are locally configured can function without an internet service provider since all of the information and data is kept on the computer. The majority of POS systems fall into one of two categories: locally installed systems, where all the data is stored on an on-site server and does not require an internet connection; or cloud-based systems, where all the data is stored online in a cloud storage system and requires an internet connection to access.

With some restrictions, several POS software vendors have more recently created hybrid systems that incorporate the best of both worlds. Let’s quickly examine how each of them functions before analyzing what that would imply for a potential “offline mode.”

A Cloud-Based POS System

A POS system that uses the cloud saves all of its data online, so any device that has the POS software installed also has to have an active internet connection to access that data. While this does imply a high-end computer is essentially useless during an internet outage, a cloud POS system also enables accessing the software from any location with an internet connection.

With a cloud POS system, customers can also expect regular software updates as new features become available. A cloud POS system has a lot of benefits, so it’s reasonable to say that they won’t be obsolete very soon.

Locally-Installed POS Systems

POS systems that are installed locally are frequently referred to as legacy systems since they existed before the cloud. Due to the fact that all necessary data and information is saved on the computer, a locally installed system can function without an internet connection. It’s features include:

  • Requires Local Server and Networking Hardware: All data is kept on a local network and server, enabling data sharing between various devices and hardline connections to peripherals like printers. However, that does imply that, especially with big networks, you could need some technical know-how to manage the system.
  • Information access is restricted since all devices operate on a local network. That’s not to suggest that cloud computing systems aren’t secure—they most definitely are—but for certain companies, limiting access to data to employees who are physically present on the premises may have advantages.
  • One-time Cost: A locally installed system often has a one-time licensing price and, if necessary, a minor monthly maintenance fee for your internal network. The total cost of these license fees, however, will depend on how many devices you require and might reach several thousand dollars.
  • There are no free software enhancements or updates:Locally-installed POS systems often do not include free software upgrades unless there is a rather significant bug, but SaaS providers frequently provide updates for free and continuously.

What Does “Offline Mode” Really Mean?

A POS system with an offline mode presents a challenge since the phrase “offline mode” has a wide range of meanings. You must understand what the system is able to handle if the internet goes down, because not all “offline modes” are made equal.

Naturally, that also relies on the configuration you have made, including whether you have configured receipt printers, printer-driven cash drawers, kitchen printers, etc. Your requirements for offline mode will differ significantly depending on whether you operate a full-service restaurant with a patio or a pop-up shop with a simple mobile POS system.

An offline mode can operate in either of two ways:

  • A cloud-based POS system that can operate independently of the internetThe computer or tablet connects to any peripherals using Bluetooth. This describes how the offline modes for Square POS and Shopify POS operate.
  • Hybrid POS system: The best aspects of this POS systems is that they are installed locally and in the cloud. Although the system is mostly cloud-based, a local server is always running in the background to ensure that the POS continues to operate and save data until access is restored, even if there is an internet outage. Additionally, this permits some level of functioning for networked printers and other portable devices. The hybrid solution with an offline option demonstrated by Toast POS is excellent.