The enterprise systems are built with a monolithic way of software architecture which may not be the very suitable and realistic solutions, due to the quantity and diversity of Internet of Things (IOT) devices connected to the internet. The large code is based as a single deployable unit; making it cumbersome and difficult to change, test, and deploy – typically in the monthly deployment cycles. Which could potentially be a large impact and high-risk for updates and deployment build up between releases.  The thesis aims to exploit Microservices Architecture in context of the Internet of Things. Because of scalability and rapid deployment, Microservices Architecture (MSA) naturally fits for M2M and IOT developments. Therefore, it has become increasingly popular and highly suited as a design choice in the context of developing IOT applications. We have proposed various ontologies for conceptual architecture designs. Our conceptual model encompasses all the essential elements and entities that constitute IOT; describing various characteristics of microservices and consideration to be used as a basis for developing a Reference Architecture model. The reference architecture is effectively exploiting Microservices Architectural Style for a diverse set of things composition like sensor devices, connectivity and transportation protocols for IP enabled IOT smart objects.  The thesis will contribute to the conceptual space of more successful reference architectures. The goal is to provide features and deployment information with instantiation guidelines to derive the software architecture instances in a given IOT application domain. Thus, it promises to become a valuable framework in the derivation of the Microservices IOT architectures.