In Cloud computing deployments, specifically in the Infrastructure-as-a-Service (IaaS) model, networking is one of the core enabling facilities provided for the users. The IaaS approach ensures significant flexibility and manageability, since the networking resources and topologies are entirely under users’ control. In this context, considerable efforts have been devoted to promoting the Cloud paradigm as a suitable solution for managing IoT environments. Deep and genuine integration between the two ecosystems, Cloud and IoT, may only be attainable at the IaaS level. In light of extending the IoT domain capabilities’ with Cloud-based mechanisms akin to the IaaS Cloud model, network virtualization is a fundamental enabler of infrastructure-oriented IoT deployments. Indeed, an IoT deployment without networking resilience and adaptability makes it unsuitable to meet user-level demands and services’ requirements. Such a limitation makes the IoT-based services adopted in very specific and statically defined scenarios, thus leading to limited plurality and diversity of use cases. This article presents a Cloud-based approach for network virtualization in an IoT context using the de-facto standard IaaS middleware, OpenStack, and its networking subsystem, Neutron. OpenStack is being extended to enable the instantiation of virtual/overlay networks between Cloud-based instances (e.g., virtual machines, containers, and bare metal servers) and/or geographically distributed IoT nodes deployed at the network edge.