Or both — if you want both. It’s LearnDash — and LearnDash Cloud.
I don’t think I’ve ever seen a WordPress plugin priced and marketed this well as both a product and a service.
At least that’s how most people think of it… A plugin is really a product with updates and support as a service. A SaaSified plugin is still the underlying WordPress product.
What the customer cares about is what they can (or don’t have to) do — as a site builder or developer, or as someone who wants all the technical details and heavy lifting to be taken off their plate.
Both are open source. Both introduce different kinds of people to a community and ecosystem.