What it means
A traditional CMS, such as a classic WordPress setup, manages content and also renders the website. A headless CMS only manages content. Editors write and organize pages, products or articles, and developers pull that content through an API into a website, app or anywhere else.
Popular headless systems include Sanity, Contentful, Strapi and Payload. WordPress itself can also be used headless.
Why it matters for a business
Headless setups give fast, flexible websites and let the same content feed a site, an app and other channels. They add complexity, so they suit businesses with multiple channels or demanding performance needs more than a simple brochure site.
A business example
Things to watch
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Editors need a good preview so they can see changes before publishing.
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Budget for the separate frontend build.
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Check pricing tiers, which often depend on users and content volume.
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Plan how content will move if you ever switch systems.