Many people are familiar with the store-bought laser distance measurer that allow a user to 'point-and-shoot' a laser to take a precise measurement.  The system calculates the distance based on the time it takes for the light beam to reflect off the opposite object (wall, ceiling, etc.) and return to the device.

A 3D laser scanner works much the same way, except it takes tens of thousands of measurements per second while spinning, and it records every single measurement as a point in space relative to its environment.  The collection of these millions of measurement points form what is known as a "point cloud."

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This point cloud is now a 3D virtual representation, or 'static model,' of the actual building.  The point cloud is a 'static' model in that it is not editable, however it can be inserted into your software and used to draft over.