Cloud vs On-Premise PMS for Hotels: Which is Preferable? [Detailed Comparison]

Cloud vs desktop hotel software

Finding the right software is like finding true love. 

The right one just hits differently. 

Well, the analogy is a bit off-track, but it is something you would definitely agree with. 

Right?

The hotel software is undoubtedly the heart of your business.

Whenever it comes to changing your solution or adopting a new one, you always think twice about it. 

Especially, when there are two types of software – cloud and on-premise; and both are equally cherished. 

Therefore, to help you choose or invest in the best technology, in this blog we brought you the pros and cons of cloud and desktop hotel management software. 

Along the way, we will debunk some myths that prevail about cloud hotel PMS. 

Let’s begin with:

What is a hotel software?

The hotel software is a system comprising different modules and functions to automate every operation of your hotel. It is at the core of any hotel business. 

Commonly known as Hotel PMS, a hotel software has become a necessity in the present time. It simplifies your:

  • Reservations
  • Front and back-office activities
  • Housekeeping
  • Room maintenance
  • Billing and payments
  • Rate management

The software is suitable for different accommodations like a resort, hostel, B&B, serviced apartment, guest house, a chain of properties, or a vacation rental. 

It plays a significant role in improving the operational efficiency of your property. 

Moving ahead, let us tell you about: 

Which are the different types of hotel software? 

Technology has made hotel operations easier than ever before. Over the years the hotel industry welcomed various solutions like:

Cloud hotel software: It runs on a SaaS (Software as a Service) platform. It is an innovative and easiest way to manage your operations with the least IT costs.

On-premise hotel software: The on-premise or better known as the desktop or legacy-based hotel system runs as an app on your computer.

Hosted cloud hotel software: This system is hosted on servers, giving the hotelier a single and scalable system to work on.

The cloud and desktop-based software are most preferred amongst all three of them. While the cloud is modern technology, the desktop is traditional and trusted.

When it comes to choosing between cloud vs on-premise hotel PMS, there is always a debate among the hoteliers.

So, let us make you familiar with the pros and cons of both and take you to the battleground of,

Cloud vs on-premise hotel PMS

Over the last two decades, we have seen exponential growth in the field of technology. 

At present, 92% of hoteliers have already shifted to cloud infrastructure. Yet, the rest 8% of hotels prefer the legacy hotel management system (desktop hotel PMS).  

Let us break down the pluses and minuses of both for you: 

System requirements

Cloud

One of the greatest advantages of an online PMS is it does not need any special installation or downloads.

All it requires is a browser and a favorable internet connection. Each and every function is executed and the information is stored on the cloud.  So, cloud hotel software does not need any IT personnel or department for maintenance.

Desktop

A desktop PMS needs comprehensive infrastructure and technological requirements. You need to have the hardware, local servers, and different licenses for each user. However, a legacy PMS is not dependent on an internet connection. Thereby, they can be very useful in remote areas with low connectivity.

System installation & maintenance

Cloud

When you have cloud hotel software, there are no hassles of system installation. The software vendor administers the maintenance. All the updates happen without hampering your ongoing operations.

These days, cloud software is developed with advanced technology that ensures 0 downtime.

Desktop

Contrary to the cloud PMS, you have to install the hotel software in different systems. You need to buy a license for the individual machine on which you are going to use the software. (firework.com)

In case of software upgrades, you need to update it on every individual machine. Certainly, updating all the systems takes up a lot of your time and effort.

Data security

Cloud

The vendor of your cloud software generally ensures its security. They have the expertise to put robust security measures and procedures in place.

They look after automatic data backup, internet connections, and monitor the fail-safes.

All these security measures make cloud systems a safer option than on-premise systems.

Desktop

With an on-premise system, data security is the property’s responsibility. You have to install firewalls and anti-virus programs on computers using the systems. It is your lookout to ensure data safety.

Further, you need to adopt various safety measures and install tools to maintain security.

On top of that, you have to manage and closely monitor them manually.

For example:

  • Secure private networks
  • Restrict access to server rooms
  • Arrange data back-up processes
  • Install back-up servers, computers, drives, and power generators

Accessibility

Cloud

You can access the cloud system via secure login from a computer or mobile device connected to the internet.

Nowadays, modern cloud PMS offers on-the-go accessibility. You can access your cloud hotel software from anywhere in the world.

Such freedom is hard to expect from on-premise systems.

Desktop

Not everyone can access the desktop hotel system. It can only be used on computers that have installed licensed software. Installing it in the new terminal or PC will cost you extra.

If you want remote access, then you need to have the traditional technical setup (Like AnyDesk or TeamViewer.)

Heads up: Remote access can affect your software's performance and increase server workload.

Cost

Cloud

Most of the cloud-based systems are available under a subscription pricing model. The subscription cycle can be monthly, quarterly, or yearly (costing around $5 to $10 per room). 

Whereas, some vendors charge a one-time setup and training fee as well (Approximately $500). 

The pay-per-use subscription model makes cloud PMS a cost-effective option for small to medium-sized hotels.

Apart from this, there are no hardware expenses. 

The software upgrades are usually free and do not cost you for maintenance.

Desktop

On-premise hotel management systems are a traditionally expensive investment. 

It can cost a mid-sized hotel $10,000 to $20,000 or more for the software license. 

Moreover, there are annual maintenance fees and significant hardware and IT costs.

Basically, it is a huge capital expenditure that does not fit the budget of small and mid-sized properties.

Integration

Cloud

With the cloud PMS, you get a wide range of integrations. It can be easily integrated with OTAs and channel managers, because of common web standards and open application program interfaces (APIs). 

The cloud software does not need any additional integration components. 

The seamless integration with other systems improves automation and ensures better efficiency.

Desktop

Modern on-premise hotel software also offers several integrations. 

Accounting software, point-of-sale (POS) systems, ePABX, and keycard are some of the major integrations.  

But integrating with on-premise systems is a complex process. It involves a lot of manual technical work and extra hardware. 

For example, a dedicated computer between the PMS and interface system.

You may like to explore: End-to-end hospitality hardware and software integrations

So, this was a detailed analysis of the pluses and minuses of both types of hotel management software.

From the analysis, it is crystal clear that the cloud is going to be the future of the hospitality industry. 

However, most hotel owners have several myths about cloud hotel management software. 

Common myths about cloud hotel software

The introduction of cloud has revolutionized the way hotel businesses operate across the globe. 

From integrated hotel software to increased flexibility, the introduction of cloud-based software has benefited hotels in many ways. 

Despite its numerous advantages, some hoteliers are still hesitating to take the plunge due to these prevailing cloud software myths:

Myth 1: Cloud software is not safe

Though it is one of the most popular myths, however, let us tell you, with cloud software your data is safer than the old desktop system.

Reason being, the desktop-based system contains data in its original form.

It can be easily exploited by anyone who wants to steal your data or interfere with your operations.

Whereas with the cloud-based PMS, it is very hard to intervene. 

Above all, cloud PMS automates the data transfers between integrated systems. Thereby, streamlines each process and avoids the chances of errors caused by manual entries. 

It eliminates time-consuming manual data entry task

Online Hotel Software  like eZee Absolute ensures the safety of the hotel’s data by storing it in secured servers with firewall protection and SSL encryption. 

The data is backed-up automatically and you can restore it easily.

In the early stages of the cloud system, many hoteliers were not sure about Cloud. But those who have adopted this solution, they have never turned back.    

Myth 2: Cloud systems are really expensive

With a Cloud PMS, the hoteliers don’t need any IT staff or physical drives to back up the data or for maintenance work. This saves a lot of your money.

Further, after installation, there is no hassle of extra software or hardware.  So you don’t need to deal with many vendors. 

On top of that, you have the liberty to pay only for the features that you need. And, you can choose the most cost-effective plan for your property. 

Similarly, with less onsite IT infrastructure, you can reduce your energy consumption.

Another benefit of cloud and SaaS is that you can switch among different service providers without any extra expense and can keep up with all data. 

Basically, cloud-based hotel software is a viable and economical option with no long-term contracts.

Myth 3: Cloud systems do not work without electricity or internet

The creators of cloud-based software considered the fact that internet connections may fluctuate. 

You must be aware of the generators that are used in case of a power cut. 

Similarly, cloud-based software has fail-safes. 

They ensure that your ongoing operations do not get affected because of low internet connection. 

With cloud software, risk management is the responsibility of your vendor. 

So, you can be totally free from security concerns and can operate your operations in a safe environment. 

Further, almost all vendors offer round the clock customer support to help you. 

In some cases of unlikely disaster, software like eZee Absolute automatically shifts to a backup server. Thus, it gives you the benefit of stable services without affecting your business.

It is the exact same scenario as Google Drive.

If you are writing in a document on the cloud-based file system and you lose connection, then the file allows you to keep writing. 

Later on, it updates the document stored on their server once the connection is restored. 

Myth 4: Cloud systems are hard to learn

Well, if we tell you the truth, then it’s the legacy desktop system that is more complicated.

Cloud-based software is built with modern technologies, keeping the hotelier’s user experience in mind. 

The cloud systems are simpler and user friendly. 

It is an easier job to train your staff and help them become comfortable with the end-to-end functionality. Above all, it enables non-tech savvy people from all departments of your hotel to gain access.

Myth 5: Cloud systems are not worth the cost

At the start, we touch-base the infrastructural cost savings. However, that’s not the only area where the cloud helps you save your money.  Along with that, cloud systems create more revenue opportunities. 

The cloud streamlines your operations with the seamless integration of PMS with channel manager, booking engine, POS, and other software. 

When you have a well-harmonized system, you can capture all your guest details. Right from their stay duration, requests, preferences to expenses, everything is stored. 

You can use this data to impart the best-personalized service and even to upsell. 

So, these were some of the major myths that prevail about cloud hotel software. 

We hope after reading this, you won’t hold these myths about cloud hotel software.  

Now, you may ask,

Which is a suitable PMS for your Hotel?

While traditional hotel brands tend to invest in conventional hotel management systems, modern hotels are moving towards the cloud PMS.

These days, the demand for cloud systems has increased like never before. Even hotel groups are preferring cloud over desktop software. 

Most of the legacy hotel software providers have started including cloud software in their offerings. Hotel groups are also gaining confidence in the concept.

Basically, the cloud has made high-end property management systems an affordable reality for small, mid-sized, and independent properties.

It is absolutely YOUR decision to choose the types of software that guarantee you a better ROI. 

We have got a detailed buyer’s guide cum comparison tool, that has all the features of ideal hotel software. Download your copy now

Conclusion

In the present technological era, business owners have to trust software that helps to run their everyday tasks. It is an individual’s choice to decide what they want and what they are expecting from the system.

For big hotels and hotel chains installed software might work perfectly as the business is pretty much going inside the hotel. But for smaller accommodation businesses, mobility is their top priority.

Most of the hotel owners are managing everything by themselves. Therefore they need to have access to the system from any part of the world.