If Terms and Conditions are against the law, then it means nothing.
If the agreement is made without breaking the law or waving away your legal rights, then it will stand. If you purchased the software that cannot be operated on commercial hardware, then you aren't going to win. Those walls of text specify what you can and cannot do with your software, and they are clearly skewed towards the software vendor. All my graphics software cannot be legally installed on the work computer.
Perhaps there would be a movement to amend the law/rights for digital licenses to operate on cloud servers, as long as the user is using it. It would be something that you couldn't deny with the terms and conditions agreement. However, there is no way the laws/rights are so up to date that this isn't some grey area that needs legal experts to weight in.