The primary purpose of this study is to use the principles of service science as a foundation approach to provide a path for innovation and transformation service business models (SBMs) through the power of cloud technology within the service ecosystem. In addition, this research, contributes to improve the understanding for the business dynamics behind this transformation in such a way that to explain the processes for GDL to transition to SDL business innovation models. Moreover, this paper seeks to answer the question that how cloud to create value in the context of SBMs within the service ecosystem? This paper is one of the first attempts to integrate these disciplines, so that it offers an original contribution by propose the novel trend in the form of a path with 5 steps for SBMs innovation and transformation and also co-create value. This research has a qualitative approach to seek to answer the research questions that has been adopted based on Kitchenham et al. (2009) seven steps guidelines for conducting a systematic literature review. This paper is the first systematic reviews on the business models that is supported through cloud technology so that conducted using the 45 research articles shortlisted were discussed and analyzed and finally on that basis, a path with 5 steps is provided to answer the research questions. Moreover, this study provides insights to SMEs, ICT vendors, service providers and government agencies to align the business models with cloud services for the most benefits. It also to act as a guide for practitioners to seek and apply such models in their business in order to produce smart solutions that can provision even smarter services.
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