http://techcrunch.com/2015/05/20/glowforge-series-a/
How defensible is Glowforge’s laser cutting tech? Shapiro says the key innovation the team has come up with is moving a large number of functions out of the hardware itself and into the cloud. “We have ripped out huge amounts of hardware from the machine — from a typical laser design, and replaced those with software that we run in cloud servers instead of running locally,” he explains.
One example is the motion controller board used on many traditional laser cutters to translate whatever line the person wants cutting or engraving into a series of electrical pulses that choreograph the motor. Instead of using that type of component, which Shapiro says starts at $400, or even using a cheaper alternative controller like an Arduino, the Glowforge uses cloud software to do the grunt work. “We simply send down the ones and zeros for the motor to the machine over the internet which reduces the cost by a factor of 100,” he notes.
“The thing that’s relatively easy to clone is the hardware, although we have some interesting innovations and patents there, but the place where we think we can really add a great deal of value is in the software,” he adds.