You can just charge subscriptions for local first software. No cloud is irrelevant. Only the value to the user matters.
Pirates is the cost of doing business. Just ignore them.
No need to make this too complicated.
Source: me, I do this way.
There are a lot of cracking groups that circumvent license servers on day one with software that have license servers.
I'm sure this is the reason that Adobe went to the cloud, Adobe couldn't ignore them as with other 'box software'.