This paper aims to discuss the contribution of the Internet of Things (IoT) to the evolution of smart cities and identify how connected technologies improve life standards and functioning of cities. Thus, IoT solutions can help cities enhance usage of resources, security, and government—community interaction along with paying attention to ecological questions. The paper also seeks to review different success stories of IoT applications in city context together with the problematics and prospects of their further application. Lastly, this research seeks to establish mechanisms to implement IoT technologies that will lead to the development of effective urban ecosystems.