We're expert of the EU MDR, the "new" medical device regulation, and there are many Cloud services trying to seduce customers. But clearly no-one wants to have their software online: Medical industry is crossing the chasm when they can control when their Cloud software is upgraded, but the aerospace is a hard no and the ISO 26252 field (automotive) is even worse. With AI and Trump, it gives them reason.
The Cloud thing is completely driven by software companies, not by their customers. I'm really surprised that we did succeed at forcefully moving unwilling customers to the Cloud, it really doesn't answer their needs.
But downloadable software today is completely free to hack. Downloadable software is akin to open-sourcing your software.