Here's a great little read that highlights examples of why moving to cloud based property management systems is a wise move for businesses in the hospitality industry. Here at Clarity we also provide a cloud based storage service for businesses to keep all their data backed up and secure in the event of a data disaster. If you would like to know more about our cloud service get in touch here

Cloud-based PMS: From CapEx to OpEx

When a hotel moves to a cloud-based property-management system, the expenditures for the PMS move from a capital expense to a monthly operating expense, which can be very freeing to a hotel’s budget. Hoteliers no longer need to purchase and store all the hardware needed to run a property-based PMS.

This also means that there are no hardware failures, no maintenance to systems, no need to worry about timing upgrades and no versioning issues with programs, said Todd Sabo, president and GM of RMS North America. There also are no installation costs with installing all that hardware and no need to configure a space to house that equipment.

“With just renting the software, there are minimal setup costs and easy configurations — you’re basically renting the software for a predictable monthly amount,” he said. “It is much more budget-friendly.”

With cloud-based systems, the vendors take over the responsibilities for the systems’ health, said Erik Weller, SVP of education at Itesso. “When you have an on-premise system, the owner is responsible for the back-ups,” he said. “Now that hoteliers use software as a service, the vendor is responsible for back-ups and maintenance, leaving the hoteliers free to provide customer service.”