What is the recommended method of authenticating against the OnDemand JIRA REST API?
You can use 2 types of authorisation. Basic Auth or using Cookies. See User Authentication under https://developer.atlassian.com/display/JIRADEV/JIRA+REST+API+(Alpha)+Tutorial for details.
There are some more details which might help at http://confluence.atlassian.com/display/DOCSPRINT/The+Simplest+Possible+JIRA+REST+Examples
Recommended for Cloud: Cookie Based Authentication
https://developer.atlassian.com/display/JIRADEV/JIRA+REST+API+Example+-+Cookie-based+Authentication
Basic authentication should only be done for simple tests. Because the user needs to authenticate on each request, it uses more resources and may cause system instability if used heavily.
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@Mauro Ezequiel Fernandez Badii - OAuth is not possible with Cloud?
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