There are a few ways piracy in the cloud could occur. A hacker could crack a cloud user's password and illegally use their account, including unauthorized use of applications.
Some cloud service providers' DRM policies also "crack" a window for pirates. First of all, Amazon's DRM is optional so any software developer that does not opt to protect his offering in the cloud with DRM is automatically exposing himself to piracy. Only if the DRM is applied will the application validate the user's
license.
What's more the software only verifies the license once, at initial lauch. After that, a digital token is downloaded on to the user's device. The digital token works much in the same way as cookies, so the when the user relaunches the software, the digital token is referred to, to confirm the user has a valid license.
If the ditigal tokens are hacked, software pirates have a green light to illegally use the software.