Companies can add the iLok cloud option to the other authorization options. It’s entirely optional, not a either/or case.

Sure it’s an option but still a disaster for the reason(s) I wrote about. Why offer users something that is that? If it were my company and people asked for Cloud iLok I’d tell them I’m not offering it as I want my customers to have a great experience. Besides there’s the whole security thing with any cloud s/w. Too liable to be intercepted and hacked. Yes – iLok has been hacked before.