This document discusses transforming rasters and point clouds in FME 2016.1. It introduces new capabilities like support for Autodesk ReCap and Cesium point clouds. It also describes tools for integrating third-party software like LAStools and ImageMagick. Examples are provided on using these tools to create digital terrain and surface models from point clouds. Advanced techniques for large-scale viewshed analysis with point clouds handling billions of points are also covered.