The emergence of smart and innovative applications in diverse domains has inspired our lives by presenting many state-of-the art applications ranging from offline to smart online systems, smart communication system to tracking systems, and many others. The availability of smart internet enabled systems has made the world as a global village where people can collaborate, communicate, and share information in secure and timely manner. Innovation in information technology focuses on investigating characteristics that make it easier for the people to accept and distribute innovative IT-based processes or products. To provide elastic services and resource the Internet service provider developed cloud computing to support maximal number of users. Cloud computing is a subscription paradigm in which users do not buy various resources permanently, but they purchase it with block chain-driven payment schemes (credit cards). A flexible, on-demand, and dynamically scalable computer infrastructure is offered by cloud providers to its clients on charging some amount of subscription. This research article provides an introduction of cloud computing and the integration of IoT concept, its impacts on crowd and organizations, provision of various services, and analyzing and selecting the appropriate features using probability distribution function for enhancing cloud-based IoT capabilities. In ambiguous and complex situations, decision makers use quantitative techniques combined with traditional approaches to select the appropriate one among a group of features. Probability distribution function is used to evaluate the appropriate features that will enhance the capabilities of cloud-based IoT application.