Cloud computing is a model that provide on-demand access to a range of computing services and resources such as servers, networks, storage, and application through the internet. Companies utilizing cloud computing can use different services based on their needs without initial capital expenditure. For the companies adopting cloud, business models have changed the competitive edge it offers to the business. In this thesis, we study the impacts of cloud transformation on the business models, using Osterwalder’s business model canvas as framework. To give a holistic view of the cloud transformation, the study also presents the motivations, challenges and factors that should be considered by the companies for their transformation journey.We carried out this study by using qualitative research, i.e., by interviewing experienced leaders from software development unit in companies from different industries. In our findings, we conclude that cloud transformation brings positive impacts in the customer relationships as it offers promising and advantageous value propositions due to the technological advancement in the key activities and resources. Therefore, it could attract new customer segments. Furthermore, with the new potential customers and with the value propositions it offers, cloud computing could unleash numerous new revenue streams.However, companies must be aware of the challenges that one might encounter during the cloud transformation journey. Prioritization of software assets, clear communication and compatibility, security are the main factors that need to be in focus.For future research, we recommend studying the financial impact of cloud transformation, such as additional revenue and profitability as these aspects are the real main drive of any business innovation. We also recommend studying the impact of data protection laws such as GDPR laws or regulations that could impact the organizational businesses.