What exactly is "software" though? Is it just the code, or does it include the whole tech infrastructure that runs it, or even all the business agreements that makes the service possible and makes it all available to the end user? For the average user, the perception of software is increasingly shifting towards the third definition.

I agree the first definition can be cloned fairly quickly, but the second is tougher, and the third requires cloning of practically the entire company operations. Imagine how hard it would be to, say, make an open source clone of something like Netflix, INCLUDING the vast majority of the video content provided -- all legally, of course!