The evolution of cloud computing, with its promise of lower operational costs and the flexible provisioning model of ‘pay as you go,’ is propelling the need for commoditization of services related to cloud computing and virtualization. This phenomenon is pushing many companies to re-invent themselves with the goal of better positioning themselves within the new cloud computing paradigm. At the same time, new automation concepts are building smart solutions as services that can be provisioned on cloud platforms. For software testing, the cloud offers a range of opportunities for optimized cost testing. This paper looks at how testing can be transfigured through the evolving Testing models for Cloud, outlines the potential benefits and evaluates the challenges, the services being developed and provides an outlook for Testing the Cloud and Testing on the Cloud. Under enormous pressure to reduce IT costs, CIOs and CTOs have to make tough decisions: Moving towards cloud computing platforms offers compelling cost benefits; but lack of standards, data security concerns and the risk of vendor lock-in provide significant challenges for deploying applications in cloud-based environments. The growth of cloud-based computing is based on a compelling value proposition: speed to market, agility to bring forward or retire service, and the chance to move expenditure from Capex into Opex.