7 Advantages of Cloud-Based Automatic Number Plate Recognition (ANPR)

License plate recognition (LPR) is prevalent in many different industries, including law enforcement, traffic management, and commercial parking. Traditionally, license plate recognition occurs on-site using specialized LPR camera systems equipped with automatic number plate recognition (ANPR) software. Now, more businesses are moving towards using cloud-based ANPR systems because they offer better reliability, flexibility, and efficiency. In this article, we will discuss the differences between on-premise ANPR systems and cloud-based ANPR systems, as well as the benefits of the latter.

Efficient Data Processing

The main difference between on-premise ANPR systems and cloud-based ANPR systems is where they process data. As the name suggests, all data processing for on-premise ANPR systems, including image capture, analysis, and database matching, occurs on-site using hardware or servers that run the ANPR software. This limits the speed and accuracy of recognition to the hardware’s processing power. Cloud-based ANPR systems send data to remote cloud servers for processing. The cloud’s data processing capabilities are much more powerful, allowing for more accurate and efficient license plate recognition.

Improved Accuracy

On-premise ANPR systems use optical character recognition (OCR) software to decipher and encode the characters from captured license plates. OCR is prone to errors, especially when it comes to similar-looking digits or letters (e.g. “I” and “1”). Furthermore, the software may not be able to read plate images captured in different lightings, angles, or vehicle speeds. In comparison, cloud-based ANPR systems are much more accurate. They still use OCR, but the technology is refined with artificial intelligence (AI) algorithms. These machine learning and deep learning algorithms continuously improve their accuracy as they process more data, making them highly effective at recognizing license plates under various conditions.

Flexible Data Storage

On-premise ANPR systems store license plate information at the same location of the LPR cameras on physical storage devices, such as servers or network video recorders (NVR). These devices have limited storage capacity so adding storage will require purchasing and installing additional hardware. Cloud-based ANPR systems provide more flexibility because the data is kept in the online cloud. The cloud has unlimited storage capacity so adding storage will always be possible, but without the complications of installing new hardware.


Expanding an on-premise ANPR system can be complex because of all the hardware that is involved. Purchasing and installing additional cameras, storage devices, and ANPR software can be costly and time-consuming. Not only that, the data can only be accessed on-site so connecting multiple systems across different locations is basically impossible. Cloud-based ANPR systems don’t use on-site storage devices so scaling up much easier. Expanding the system only requires paying for additional storage and connecting the new cameras to the cloud. Additionally, organizations can seamlessly connect multiple systems to the cloud and manage them from one platform.

Ease of Accessibility

Storing data on-site limits the accessibility of on-premise ANPR systems. To access data, you will need to be physically present at the site or connect to the servers via local network. Cloud-based ANPR systems are much easier to access and only require connecting to the cloud server over the internet. Users can access and manage their cloud data from any device and from any location with internet connection.

Low Maintenance

Maintaining and updating cloud-based ANPR systems is much easier than on-premise ANPR systems. On-premise ANPR systems have more equipment so there’s a higher risk of equipment failure which can disrupt operations. Yearly maintenance inspections are necessary to ensure that the system is operational, but hiring someone perform the inspection can be expensive and time-consuming. Not only that, any software updates or security patches have to be manually installed on the hardware. With cloud-based ANPR systems, all software updates, maintenance, and patches are automatically installed through the cloud. This ensures that the system is up-to-date on all the latest features and security enhancements.

Predictable & Lower Costs

Many people believe that cloud-based ANPR systems are more expensive than on-premise ANPR systems because they require monthly payments to the cloud provider. However, using a cloud-based ANPR system can actually save you money in the long-run. The upfront cost of an on-premise ANPR system can be quite high since there’s more hardware to buy and install. There are also ongoing expenses for regular maintenance, as well as the need for a dedicated IT team to manage on-site servers. Cloud-based ANPR systems are more cost-effective because there’s less hardware to maintain. They operate on monthly subscription plans so users can customize their monthly payment depending on what services they use.

Optimize Operations with PLACA.AI’s Cloud-Based ANPR

Cloud-based ANPR systems improve license plate recognition by leveraging the advantages of cloud computing to offer greater reliability, flexibility, and accessibility. If you’re interested in moving your on-premise ANPR system to the cloud, we can help. PLACA.AI is an advanced, cloud-based ANPR service that allows you to monitor and manage every vehicle that passes through your property with unmatched convenience and security. This cloud-based solution simplifies operations and provides instantaneous, highly accurate license plate recognition. To subscribe, contact the 2M Technology sales team by phone at +1 (866) 708-5401 or by email at sales@2mtechnology.net!

Call now