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5 Drawbacks Of A Legacy POS System That You Probably Aren’t Aware Of

The Point of Sale (POS) system has contributed to millions of businesses’ ability to handle management activities more effectively in recent years. In addition to the advancements in technology, the POS system has been upgraded to enhance customer convenience and mobility. Cloud-based POS (modern system) has many differences and superior features when compared to Legacy POS (traditional system).

A POS system can be quite costly, so you should research carefully before investing in one. In this article, we will help you identify the drawbacks of a legacy POS system in the current market scenario in order to help you make a more informed business decision.

What is a Legacy POS?

Legacy POS is a sales management system that includes a computer with point-of-sale software loaded in order to save all of the information and data. All information is kept on a local server and in a secure intranet system. They are boxy, (usually) black terminals found at restaurant counters, usually accompanied by a keyboard, printer, and credit card machine. 

These POS systems are common and have been used for many years. For this reason, they are already installed across several devices at various restaurants. Establishments in this position, however, will find that maintaining legacy systems is challenging, since every tool has to be updated manually to prevent security breaches. 

Additionally, updating legacy systems is so costly and time-consuming that they are only updated once a year – despite the fact that all POS systems should be updated more often for maximum security.

Drawbacks of a Legacy POS

With the introduction of cloud technology, restaurant operations are changing drastically. It gives restaurateurs their time back and provides them with the visibility they crave at a cost they can afford.

A legacy POS system, however, requires owners to be present at the location in order to input, analyze, or retrieve data. Therefore, they cannot create reports from home, replace or update stock items online, or perform other tasks unless they are on-premises. Because of this, dealing with legacy POS systems can be frustrating and take a considerable amount of time.

Let’s dig into the drawbacks of legacy POS systems which tell you why you can no longer rely on them.

  1. Extreme Upfront Fees

Due to the fact that the majority of business models are built around paying a single amount to buy the software and installing it on an expensive local server, legacy software entails a lot of high upfront expenditures. Additionally, keep in mind that setup and installation costs as well as the price of appropriate hardware (such as a workstation, scanner, receipt printer, etc.) that is required can all add up quickly.

The greatest of these systems will undoubtedly cost you thousands of dollars, and this normally carries a significant risk because the system you’re buying might not even satisfy your POS needs.

  1. Paid Upkeep & Updates

Since it is installed locally, a traditional or legacy POS system needs to be updated on your company’s premises. Sometimes you can do this yourself, but more often than not, you need to employ a professional to complete the task. Obviously, that will also represent a considerable financial outlay on your behalf, especially in light of the necessity for ongoing updates. The cost of reinstalling the system might sometimes be on par with the cost of installing a new system. Additionally, if your server crashes in the middle of a transaction, you can lose out on sales unless you are a developer and are familiar with how servers operate.

  1. Paying Support

Again, you must get a professional to look at your legacy POS system whenever it malfunctions. This method of getting help for your POS system may not be the most time-efficient one, in addition to being very expensive. Costs associated with support services might rise significantly for systems that are overly complicated or have a high number of usability problems. If on-premise help is necessary, this could take several hours or even days, which would slow down your operation.

  1. Expensive Equipment

Since a traditional POS system is installed locally, you must purchase hardware, such as on-site servers. These additional hardware resources are frequently fairly expensive as well, especially when you take into account the possibility that you may need to engage an IT professional to keep the system running smoothly by resolving any minor issues that may occasionally arise. To fully benefit from what these systems have to offer, you may occasionally need to use proprietary gear. As you might expect, specialised hardware is never inexpensive, and the costs can soar when you need to install the system at numerous commercial locations.

  1. Higher Operating Costs and Data Loss Risks

High data loss hazards are presented by legacy software. You run the risk of losing all of your data if there is a natural disaster like a fire or a flood because your data is on a local server that is installed in your store. Additionally, due to how quickly technology is developing, new security concerns are appearing daily. A number of security hazards will also be present if your legacy software is out-of-date.

Running a typical POS system requires more hardware, which has higher ongoing expenditures. In addition to other on-site gear required to run these POS systems, servers can be true power hogs, which can drastically raise your electricity costs. You can also incur higher operational costs if your legacy software is unable to communicate with other, more modern systems. For instance, you will have to put in extra effort to transfer sales information to these systems in order to keep your store information up to date if you cannot automate data flow from your POS to your accounting software or e-Commerce site.

Legacy POS drawbacks for restaurants

4 Strategies to Deal with Legacy POS System Issues

Once the issues with old systems have been recognised, it’s time to plan how to safeguard your software. There are various techniques to modernise historical systems in order to increase security.

Here is a brief summary of the top four methods for dealing with the issues with legacy systems:

  1. Consolidate

Limiting network access to your legacy system’s data and features with a firewall is the simplest approach to keep it secure. After air-gapping the software, you can continue employing outdated technologies with significant operational value by exposing its features as services via API. With this approach, you may address the on-premises legacy software performance, compliance, and IT network infrastructure security challenges.
Air-gapping is only a temporary solution, though. The problems with maintenance and updates are not addressed by encapsulating legacy technologies.

  1. Rephrase

The most sensible software modernisation strategy for your company would seem to be rewriting the software to address legacy dependencies. However, rewriting software may easily turn into an execution nightmare as you delve through outdated code to uncover long-forgotten fringe use cases. Your best choice is a total rewrite if:

  • The software’s underlying structure is outdated, while being mission-critical.
  • Finding qualified people to maintain the programme is difficult for you.
  • The maintenance of the software is more expensive than rewriting it.

Rewriting allows you to re-evaluate functionality and incorporate future-proof strategies, but it is an expensive process that can use up company resources that could be used for expanding features, expanding product options, or marketing your brand.

  1. Rehost

One of the quickest, least expensive, and riskiest ways to safeguard legacy software is to rehost it. This is due to the fact that cloud solutions are more flexible than on-site hardware options. Additionally, it offers you extra alternatives based on your use case. Your programme can be moved to either a public cloud solution or a private cloud solution. Moving to the public cloud offers less expensive prices and practically infinite scalability. After data migration, you might need to restructure your code so that it will run on the public cloud architecture.

  1. Refactor

A low-risk solution to address compatibility and security issues is to re-factor your legacy software systems to work with cutting-edge technologies. You can enhance capabilities, replace specific components of your programme, and even rethink your IT architecture as you remodel. The drawbacks of refactoring include its great sluggishness, high skill requirement, and potential for increased complexity over time. Before choosing this strategy, be certain that the reworking costs are accurately estimated and well planned.

Summing Up

The operating system of legacy POS systems is obsolete, their interfaces are outdated, and their software is slow. Legacy POS systems seriously limit the growth of businesses because they cannot stay up-to-date with the evolving needs of the market.

There’s also the issue of incompatibility of legacy POS with new technologies, so if your system becomes damaged or faulty, you’ll have difficulty finding replacement parts. These obstacles will hinder your business activities.

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