--- tags: Week 1, H3, M1 --- # Software business models :::warning :lightning: SaaS, IaaS and PaaS are not technically business models, although they’re generally referred as such. ::: The concept of SaaS refers to - What they sell (software) and - how they do it (regular updates at no additional cost, and usually web-based). 🤑 A lot of SaaS companies make money via a **subscription business model.** Before we dive into the most common business models: do you have a clear idea of what a business model is? Let's have a look 👇 :::info :bulb: A business model is the way in which a company creates, delivers and captures value. ::: &nbsp; <iframe width="560" height="315" src="https://www.youtube.com/embed/W4eCV9gbzAk" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> &nbsp; *p.s. for the video, we recommend you stop listening at minute 3:00. The rest is not relevant to you.* **Side note:** In the video, professor Linus Malmberg explains what a business model is, using a version of the business model canvas. The business model canvas was invented by Alex Osterwalder, a Swiss business theorist and entrepreneur as a part of his PhD research. As the term implies, it's a canvas or one pager, showing a company's business model with all it's relevant areas. If you want to get a quick explanation, see [here](https://youtu.be/QoAOzMTLP5s). <style> body > .ui-infobar, body > .ui-toc, body > .ui-affix-toc, body > .ui-community, body > .document-footer { display: none !important; } </style>