Q: My iPod touch does not have a software update, how can I get the iCloud on it??

Depends on which ipod touch you have.

Identifying iPod models - Support - Apple

You need ios 5 or later for icloud.

You need an ipod touch 3rd gen or later to get ios 5 or later.

You must have ios 5 or later in order to update from the ipod itself.  Otherwise update via itunes.

Sync it with iTunes on your computer.

You can download purchases directly from your iPod:

Open the iTunes Store app > More > Purchased > Music

To update

The Settings>General>Software Update comes with iOS 5 and later.

Connect the iPod to your computer and update via iTunes as far as your iPod model allows

iOS: How to update your iPhone, iPad, or iPod touch

A 1G iPod can go to iOS 2.2 via iTunes and iOS 3.1.3 via

Purchasing iOS 3.1 Software Update for iPod touch (1st generation)       

https://buy.itunes.apple.com/WebObjects/MZFinance.woa/wa/touchLegacyLandingPage

- A 2G to 4.2.1. Requires iTunes version 10 or higher. If a Mac it requires OSX 10.5.8 or later.

- A 3G to 5.1.1  Requires iTunes version 10.5 or later

- A 4G to 6.1.5  Requires iTunes version 10.7 or later. For a Mac, that requires a Mac with OSX 10.6.8 or later

- A 5G to iOS 7. Requires iTunes 11.1 or later if you update via iTunes

Identifying iPod models

iTunes: Syncing media content to iOS devices and iPod

Note, many apps are no longer compatible with your 2G iPod.

To more easily find compatible apps:

iOSSearch - search the iTunes store for compatible apps.

Apple Club - filter apps by iOS version.

App Store: Downloading Older Versions of Apps on iOS - Apple Club

App Store: Install the latest compatible version of an app

You first have to download the non-compatible version on your computer. Then when you try to purchase the version on your iPod you will be offered a compatible version if one exists.