Abstract: The need to achieve agility, scale, and innovation in the current dynamic digital environment is becoming a threat to legacy enterprise systems that have long dominated organizational IT infrastructure. Migration of the traditional systems to cloud-native systems has become one of the key strategies that organizations wish to adopt in order to modernize their IT systems. This paper discusses the transformation of the old enterprise systems in the cloud-native environment, the refactoring process, the important strategies of the migration, and the benefits and challenges involved. The aims of this paper are to assess the main tenets of cloud-native transformation, analyze the practical consequences of modernizing the legacy systems, and give a full picture of the strategies that organizations can pursue in order to have successful migration. The article under analysis, based on the analysis of the available literature and case studies, explains the importance of cloud-native solutions within the framework of improving operational efficiency, accelerated time-to-market, and innovation. It also discusses the common challenges like the complexities of data migration, security issues and organizational change management. The results indicate that the process of adapting to cloud-native systems has a number of difficulties but the long-term gains include enhanced agility, cost-effectiveness, and scalability. This paper ends with suggestions to the enterprises that are contemplating the transition to cloud-native architectures about the necessity of strategic planning, proper management of the legacy system, and following the best practices in moving to the cloud.