The Internet of Things (IoT) could enable the development of cloud multiple-input multiple-output (MIMO) systems where internet-enabled devices can work as distributed transmission/reception entities. We expect that spatial multiplexing with distributed reception using cloud MIMO would be a key factor of future wireless communication systems. In this paper, we first review practical receivers for distributed reception of spatially multiplexed transmit data where the fusion center relies on quantized received signals conveyed from geographically separated receive nodes. Using the structures of these receivers, we propose practical channel estimation techniques for the block-fading scenario. The proposed channel estimation techniques rely on very simple operations at the received nodes while achieving near-optimal channel estimation performance as the training length becomes large.