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# System prepended metadata

title: Software business models
tags: [Week 1, ' M1', ' H3']

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tags: Week 1, H3, M1
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# 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;


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&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).

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