Traditional PMS and Cloud-based PMS: What is the optimal solution for hotels? This can be considered as one of the topics in the field of hotel software that is mentioned and discussed the most.

Is it better to switch to a cloud computing solution - Cloud, or just take a stand and continue to use traditional PMS software. Usually, tech-savvy hoteliers will favor solutions using cloud technology. So what is the main difference between these 2 solutions above?

What Is PMS?

PMS is an acronym for Property Management System - known as an information management software, a system management system that helps managers optimize business activities in the hotel.

Overview of Traditional and Cloud-Based PMS

Traditional PMS concept

Traditional PMS is a type of management software that includes a large amount of technical requirements such as data centers, workstations, network cards, operating systems, and external redundant storage devices.

Advantages:

- Do not use the internet connection – offline form

- Minimize risks in data security operations

- Speed ��& ability to process large data sources fast

Disadvantages:

- The hardware system is not only cumbersome and complex, but also extremely expensive

- Accessible only to on-site connected computer resources

- Expenses for maintenance and costs for IT staff

Cloud-based PMS Definition

Cloud-based PMS is a computing model with the support of computer technology with the internet. All data is stored in the Cloud, so users can access information from anywhere on any device.

Advantages:

- Online form – using cloud computing technology, accessible from anywhere

- Automatically backup and secure information and data

- Free and automatic updates, so easy to upgrade & expand

Disadvantages:

- Online data security issues

- Requires a stable connection - 24/7

Difference between traditional PMS and Cloud-based PMS

Technical differences

A traditional PMS system requires a large number of servers and certain hardware devices compared to a cloud-based system. The outstanding benefit is that the hotel owner has complete discretion in: system settings, functions, data storage, upgrades and custom system changes.

This means that it is mandatory to have a fixed server system managed by the hotel owner. Besides, it also needs quite cumbersome systems to come, and a technical team (IT) is always on hand to ensure operation in case of problems.

In this case, backing up or moving data will be a difficult problem for hotel owners. And in the long run, the hotel will need to mobilize a huge resource and human resources, while the night efficiency will be low. However, the jobs that require a lot of effort and time above will be handled and responsible by the system provider using Cloud.

The outstanding benefits of using this software are that the system is always updated, the server is stable, the technology is always improved, and the schedule is also regularly maintained.

Cost differences

For the traditional PMS system, the initial cost requirement is quite large. In addition to the license cost to be able to use the system, the hotel owner needs to take into account the hidden costs including: IT personnel, workstation servers, hardware equipment, infrastructure, maintenance fees system…

The total of these costs may increase gradually depending on the size of the hotel you own. If you do a little math, it is easy to see that the above investment costs are too much for small and medium sized hotels. In contrast, with the Cloud system, the input cost will be much lower than that of traditional PMS. This is an affirmation!

Because, the provider will only charge a license and service fee with a fee for the initial configuration of the software. Hotel owners do not have to pay server fees, maintenance fees, or labor costs. Indeed, this is an optimal solution for small and medium hotels.

Difference in flexibility & scalability

If you are a hotel owner and appreciate the convenience of accessing the system anywhere or at any time on any device, the only answer is to use Cloud-based. PMS. Because, all big data is stored on the internet, and with a mobile-friendly design, your access promises to be extremely easy.

For a traditional PMS system, it is possible that the system that allows access from external machines is set up, but the risk is relatively high because this system cannot guarantee remote access without any problems. any incident. Furthermore, you cannot monitor real-time data when using traditional PMS software. And this is indeed a big drawback compared to the cloud storage system.

Cloud computing solutions are capable of allowing absolute scalability in case you scale up or down the hotel.

Differences in built-in features

The traditional PMS hotel management system has appeared on the market for a long time. Currently, this software has been developed with a richer ecosystem from vending machines, accounting software, or from restaurant systems to room management systems, etc. The process of integrating these systems is often complicated and takes a lot of time.

Compared to traditional PMS, the Cloud ecosystem, although born later, is growing stronger and stronger. Companies are now in the race to update and upgrade cloud computing technology to meet the demanding requirements of today's users.

Thanks to the open communication method (open API), the integration operation of this type of software is extremely simple and fast. However, we still can't deny that Cloud-based PMS is still behind traditional PMS in terms of integration capacity as well as quantity and features.

Differences in security

If the data is not stored on an internal server, most hotel owners have the mentality that they will lose control. And indeed this is the traditional way of thinking that is still popular in the hotel business in Vietnam.

However, in practice, hotel owners often forget about the security standards applied in local data storage. Specifically, restrict access to the server room, or limit the regular backup of data and 24/7 supervision. In certain cases, data theft or security attack is possible.

Currently, all systems using Cloud computing comply with the most stringent security standards and principles, including ISO 27001 or PCI DSS for information security.

Depending on the use needs, hotel owners can choose between Cloud computing including Private Cloud (private cloud), Public Cloud (public cloud) or a hybrid between the two (Hybrid Cloud). With cloud computing, hotel managers will not have to worry about the risk of system attacks, security, data backup, or system connectivity.

Traditional PMS vs Cloud-based PMS - Which solution is more optimal?

After analyzing the advantages and disadvantages between two communication PMS solutions with Cloud-based PMS, we cannot deny that the cloud computing solution brings many benefits as well as better optimization compared to Cloud-based PMS solutions. Traditional software. Specifically, the solution using Cloud:

- Low cost requirements in terms of servers, infrastructure, IT human resources

- Investment costs when paying suppliers are fixed

- Access real-time based data information

- Easy and fast integration features

- Stable operation and high security

Conclusion

With the above advantages, it is not surprising to see the trend of switching from traditional PMS to Cloud-based PMS. With the cloud computing system, what the hotel really needs and the top priority is a strong and stable internet connection.

And the reality shows that the transition from traditional solutions to Cloud is completely possible. So, you need to hard consider before making any changes.