The term “Internet of Things” (IoT) represents a vast interconnected network comprising ordinary objects enhanced with electronics like sensors, actuators, and wireless connectivity. These augmentations enable seamless communication and data sharing among devices. IoT constitutes an ecosystem of programs, systems, and technologies that operate across diverse communication services. In our rapidly evolving world, cutting‐edge technologies are swiftly gaining prominence. IoT, in particular, strives to proliferate innovative applications, programs, and communication amalgamating the virtual and physical realms. The bedrock of this communication is the machine‐to‐machine communication paradigm. IoT encompasses a spectrum of technologies encompassing smart vehicles, efficient vehicle parking management systems, and roadway‐embedded sensors, culminating in the vision of a “smart city.” Such integration has the potential to alleviate traffic congestion and curb energy consumption. The impact of IoT extends to power generation and business operations, promising transformative outcomes. Furthermore, the synergy between IoT and cloud computing plays a pivotal role in the wireless communication domain. This paper offers a comprehensive insight into IoT's functionalities and underscores the associated security threats. The study aims to equip academia with an enhanced understanding of diverse IoT applications, particularly their integration with cloud computing, referred to as the “Cloud of Things.”