#1 Hotel PMS | Property Management System | protel

In today’s world of enterprise IT, there are many factors that hotels must consider in order to decide whether a cloud-based PMS is the right fit. Conversely, there are many hotels that are unable or unwilling to make the leap into the cloud, instead relying on their tried-and-true legacy and on-premise PMSs to manage daily operations. Below is a comparison of some of the most important considerations when thinking about cloud-based vs on-prem property management systems. 

Firstly; Let’s clear up the difference between cloud and hosted services.

Technically, the main difference between hosted services and cloud services is multi-tenancy. Cloud has it and hosted services do not. Multi-tenancy enables the sharing of IT resources and costs among a vast pool of users, from massive hotel chains to small bed and breakfasts as well as all kinds of other businesses, and makes it possible for infrastructure to be concentrated in secure locations with lower costs. This maximizes peak-load capacity and improves the utilization and efficiency of systems that are often only used up to 10-20% of the time. Hosted services generally do not offer the same cost-saving efficiencies, flexibility, or reliability as cloud services. As a result, cloud computing is more fitting if you want to ensure optimum uptime for your hotel and maximum data recovery should something happen to your on-premise data. One of the top reasons hotels go the cloud route is the inter-connectedness of cloud-based systems. They make it easy for hotels to integrate other modern technologies and make the most of hospitality-based apps that share data. Now to answer the burning questions you may have on your mind. 

What IT requirements does my hotel need to run a PMS? 

Cloud

Cloud-based PMSs runs on a SaaS (Software as a Service) platform located on the internet. This is an innovative and easy way to manage hotel operations with low IT costs. Leading cloud-based PMSs can run off any modern internet-connected device. Kill the CapEx immediately!

On-prem

The on-premise or legacy-based hotel system runs software on a computer via a server that is physically located at the hotel. All of which you have to pay for in full. Standard requirements usually consist of a PC or laptop with a good quality processor, an operating system (such as Windows 10), a database and a network with at least a 1GBPS capacity. 

Which PMS is easier to install – cloud-based or on-prem?

Cloud

One of the greatest advantages of a cloud-based PMS is it does not need any special installation or downloads. A few clicks by a novice user is usually all it takes. 

On-prem

An on-prem PMS usually has comprehensive infrastructure and technological requirements. These include hardware, software, databases and IT infrastructure. If you don’t already have these installed in your hotel, you will need to get them installed by a professional. 

Will I need a dedicated IT person to manage the technical requirements of a hotel PMS? 

Cloud – No

Cloud-based PMSs do not need dedicated IT personnel for maintenance and other day-to-day running of the PMS because each and every function is executed and the information is stored and processed, off-site, in the cloud. Companies that host cloud services have teams of IT professionals that maintain and manage the system for you.

On-prem – Advisable

The technical requirements of an on-prem system add considerable cost to implementation and maintenance. It is advisable to have immediate access to an IT professional that is able to troubleshoot the system. 

How safe is my hotel’s data?

Cloud 

Cloud software hosts, like AWS, have the expertise and budget to implement robust security measures and procedures, including automatic data backups and 24/7 monitoring. This makes cloud systems a slightly more secure option than on-premise systems for independent properties.

On-prem

With an on-premise system, data security is the hotel’s responsibility. In addition to installing firewalls and anti-virus programs on internet-enabled computers, keeping data safe requires the hotel to secure private networks, restrict access to server rooms, perform manual data back-up processes, and to have back-up plans, servers, computers, and generators.

Note: Anti-virus software and strict cybersecurity procedures is a good idea for any computer accessing the internet. 

What financial considerations are there when purchasing a PMS?

Cloud 

Cloud-based systems are most commonly available via a subscription pricing model, typically based on a monthly fee, and normally a one-time setup fee. The pay-per-use subscription model makes cloud PMS an operating expense, and while the monthly cost adds up over time, the shift from capital to operational expenditure makes cloud-based PMSs a more affordable option for many smaller properties. With a cloud-based PMS, there are no hardware expenses (if your hotel has a computer or mobile device) and software upgrades are included as part of the SaaS rental package.

On-prem

On-premise hotel management systems are a big initial investment and can cost hotels a significant amount for the software licences. Additional costs include annual maintenance, hardware and upgrades. An on-premise system is a capital expenditure that often requires its own financial plan, which can put it beyond the budget of many small and mid-sized hotels, B&Bs, motels and lodges.

I have third party systems, software and vendors that I use daily for my business. Will a hotel PMS be able to connect (integrate) to these systems?

Cloud

Cloud PMSs can be easily integrated with most third-party vendor systems, especially if they are using common HTNG (Hospitality Technology Next Generation) coding and open APIs (application program interfaces). The good news is that all the serious hotel technology companies use APIs and HTNG. The ability for cloud-based PMSs to integrate to existing technologies greatly reduces the hotel’s IT requirements as you can keep existing technology or add new technology from suppliers of your choice as you are not locked into one vendor-preferred supplier.

On-prem

On-premise PMSs can be integrated with external systems such as channel managers, point-of-sale (POS) systems and revenue management systems too, however, it can be a complex process that requires technical know-how, additional hardware, and an experienced IT development team to see the project through.

Will I be able to access my PMS anytime and from anywhere?

Cloud

Cloud-based PMS are accessible via a secure login from any computer or mobile device connected to the 

internet, anywhere in the world at any time. Modern cloud PMSs offer a high level of accessibility as 

they are purpose-built to work via the internet. 

On-prem

While it is possible for on-premise systems to be accessed remotely from an off-site computer, it requires additional technical setup and, possibly, the installation of desktop virtualization products onsite. This will require some specialist IT knowledge.

Note: Remote access performance, for both cloud and on-prem PMSs, can be affected by various factors, including server workload, SSL certificate issues and network failures.

How often will I have to install upgrades and how difficult will it be?

Cloud

Upgrades are fast, frequent and usually free-of-charge with cloud-based systems and can usually be deployed instantly. This means that accommodation providers always have access to the latest version of the PMS, including new features and innovations that keep them ahead of the competition.

On-prem

On-premise systems can face lengthy development cycles, compared to cloud-based systems, and require relatively expensive and, often, time-consuming upgrades to remain current.

My hotel is very isolated with limited access to the internet – which is the best option for me?

On-prem 

An on-prem PMS is not dependent on an internet connection. Therefore, they can be very useful in remote areas with unstable connectivity.

What other benefits do cloud-based systems offer hotels?

Cloud 

Cloud-based PMSs equip both hoteliers and guests with improved agility and mobile functionalities that bring them together and create a more cohesive relationship. This allows guests to immerse themselves in the hotel experience rather than only looking in from the outside. This has been proven to increase overall guest satisfaction, which in turn leads to more bookings.

Hosting the hotel’s IT infrastructure in the cloud offers the flexibility to scale up or down instantaneously. The pay-as-you-go pricing can enable the hotel to keep all expenses in check, increase capacity during peak seasons and keep costs low during the offseason.

Choosing between a cloud-based and on-premise PMS can be a very tough decision. If you would like to know more about the two kinds of systems you can read about it here. If you would like to talk to a professional about which system works best for your specific hotel then click here.