The LAS Dataset To Raster function is used to render lidar data managed using the LAS dataset. The function will be used when you add lidar data to a mosaic dataset using the LAS Dataset raster type. With this function, you need to specify both input and output properties. Due to the resolution of the data and the time it can take to convert the point data to raster data, this function will write preprocessed raster data files to an output location (as cache).