This doesn't require "cloud" at all, just network connectivity. Software auto-updaters are no more complicated than zero-downtime cloud deployments. Especially in fully controlled environments where issues of users randomly switching off autoupdates or blocking Internet connectivity are probably nearly non-existent.
I'd argue that the software is more resilient if it runs locally. One can argue that cloud can be updated "in realtime" but live code updates had existed since forever (at least since eighties, with Erlang/OTP), and running locally makes things robust against network outages (or degradation) - which is probably way more frequent issue than getting the latest updates immediately.