Context: Internet of things (IoT) technology is rapidly increasing and changes the business environment for a software organization. There is a need to understand what are important factors of business model should a software company focus on obtaining benefits from the potential that IoT offers. This thesis also focuses on finding the impact of IoT on software business model and software industry especially on software development. Objectives: In this thesis, we do research on IoT software business model and also software industry. The objectives of this research are included as follows: 1. Summarize the current business models for IoT and to identify the important factor for IoT business models. 2. Analyze the impact of IoT on software business models. 3. Analyze the impact of IoT on Software development especially on requirement engineering. 4. Provide recommendations how requirements engineering are connected to provide better support business modeling for IoT. Methods: We conducted a systematic literature review based on the guidelines suggested by Wohlin, to find the current business model for the IoT. Next, we designed and executed an industrial survey to explore the impact of IoT on a software business model and software development.The results of survey were statistically analyzed using descriptive statistics, chi-square test of significance and Friedman test. Results: 21 peer reviewed papers were identified which were analyzed in relation to their rigor and relevance. From the literature reviews, results indicate 9 business model elements are being focused on the IoT business models. In addition to this 4 most important business model factors were identified. On the other hand, the industrial survey resulted from 56 survey responses, identified that value proposition is the most important element for the IoT business model. It was also observed that even the impact is high for the value proposition. Regarding the software development, customer demands is highly impactful and moreover, the results suggest that requirement management is highly impactful. Conclusions: The current software business models were found for the IoT industries. In additional the software business model elements which were majorly focused in the IoT industries were also identified and the most important factor which brings the value for IoT business models were also discussed. Furthermore the impact of IoT on software business model element and software development, especially on the requirement phase, was analyzed and discussed. This helps the practitioners to understand the impact of IoT on software business models and software industry and helps the organization to improve IoT business to its full potential.