With ever-increasing applications of IoT, and due to the heterogeneous and bursty nature of these applications, scalability has become an important research issue in building cloud-based IoT/M2M systems. This research proposes a dynamic SDN-based network slicing mechanism to tackle the scalability problems caused by such heterogeneity and fluctuation of IoT application requirements. The proposed method can automatically create a network slice on-the-fly for each new type of IoT application and adjust the QoS characteristics of the slice dynamically according to the changing requirements of an IoT application. Validated with extensive experiments, the proposed mechanism demonstrates better platform scalability when compared to a static slicing system.