Software & SaaS: how the sector works
how SaaS works as a business: the recurring-revenue model, the subscription value chain, retention as the engine, and why it differs from selling licenses.
This block builds a working map of the Software and SaaS sector: how software is built, sold, and delivered; who captures value across the chain; which rules constrain how companies operate; and which numbers separate strong businesses from weak ones. You will trace the path from code to cloud to customer, see how hyperscalers, vendors, resellers, and open-source communities compete and cooperate, and learn which regulations (data privacy, security, licensing) actually bind day-to-day decisions. The block closes with the metrics, acronyms, and benchmarks practitioners use to size markets, judge efficiency, and diligence a SaaS company quickly and credibly, whether you are an operator, investor, or advisor entering the sector.
What you'll master
- Map the SaaS value chain end to end from infrastructure to end customer, identifying where margin concentrates
- Explain the competitive dynamics between hyperscalers, incumbents, challengers, and open-source players and predict likely power shifts
- Identify which regulations (GDPR, SOC 2, data residency rules) apply to a given SaaS business model and what compliance actually requires
- Calculate and interpret core SaaS benchmarks (ARR, NRR, CAC payback, Rule of 40) to assess the health of a software company