Integrating the Internet of Things (IoT) with cloud computing has presented a groundbreaking worldview, rethinking communications and data sharing among the connected devices. This chapter thoroughly investigates cloud-based IoT, including its architecture, advantages, challenges, and future possibilities. Cloud technologies enhance IoT capabilities, such as, data collection, storage, processing, and analysis. As the current information technology trends mature and their popularity increases in terms of providing novel applications, there is an observance of a deluge of connected gadgets, and hence cloud computing becomes a strategic partner in fulfilling the diverse requirements of efficient IoT data management. In general, the research focuses on performing a systematic review of the extant literature with regard to security and performance considerations for cloud-based IoT systems. More, specifically, it delves into the critical aspects of data security, system performance optimization, and interoperability among existing platforms and novel applications. The solutions to the issues identified are proposed, so as to address the limitations of cloud-based IoT and provide insights on how to improve the state-of-the-art solutions to cater for the future diverse needs of the ever-evolving cloud-based IoT landscape.