Cloud vs On-premise PMS for hotels: which one is better? - CiHMS - 0 views
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On-premise Property Management System requires a significant number of “on property” hardware compared to the Cloud-based one. It gives the hoteliers total control: data and the system, system configurations, networks, updates, and changes are all yours to decide
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Running the On-premises PMS means hoteliers must maintain a dedicated server room, which also needs an effective cooling system and an around-the-clock support team to keep everything up and running smoothly
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With the cloud computing vendors, the PMS providers would be responsible for most of the IT operations expense. The hoteliers can also get the advantages from the cloud computing vendors’ highly available servers, at their optimal performance.
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The hidden cost includes hardware server costs, additional IT staff expenses to manage the system infrastructure, maintenance fees (yes, more maintenance fees), and the expenses of other 3rd party software integrations
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A cloud-based PMS has a much lower entry cost. They charge a fixed monthly subscription model, with a small initial setup fee. No server cost, maintenance fee, extra human resources cost, lower energy bills and is an extremely affordable budget for small and medium scaled hotel businesses
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Although you can set up your On-premises PMS to be accessed from an off-site workstation or device, remote access can be affected by various factors. Getting real-time data can certainly be challenging, especially not at the speed that cloud-based PMS delivers
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Undoubtedly, On-premises PMS is still ahead of the Cloud-based system when it comes to the number of integration capabilities, the flexibility of built-in reports that got customized, added over the years.
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a security breach can happen, losing your internal data, your brand reputation, revenue loss is unavoidable.
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It explains the widespread adoption of cloud-based systems. The only thing you have to hold responsible for is your Internet connectivity which is basic infrastructure any hotel should already have in place. In fact, the switch to cloud-based PMS is not impossible for the existing On-premises system.
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When it comes to deciding whether you should switch to cloud computing or remain with on-premises PMS, it all depends on your company. Many people fail to see the hidden costs associated with on-premise PMS such as hardware costs, IT staff to manage the infrastructure and expenses coming from 3rd party software integrations. Although on-premises PMS can be more customizable for companies, cloud-based systems are dominating. They reduce costs, are highly accessible in real time, fees are consistent, and are highly secured.