[Obsidian Dragon]

If I'm not mistaken, even with Ilok cloud, you must still use a physical ilok initially to activate the license that is deposited to your ilok account. Once you have it Protools working from the physical ilok, you can move the authorization into ilok cloud.

Having said that, I would never use ilok cloud due to unreliability (we've seen ilok server outages that prevented many commercial studios users from being able to use Protools until the problem was fixed). Also if your Internet goes down or is unreliable, you may not be able to run Protools. A physical ilok will allow you to run Protools without an Internet connection and even if Ilok servers goes down. In the future, you might obtain some plugins that will require a physical ilok, so you might as well invest in one now.