Internet of things witnessed rapid growth in the last decade and is considered to be a promising field that plays an all-important role in every aspect of modern-day life. However, the growth of IoT is seriously hindered by factors like limited storage, communication capabilities, and computational power. On the other hand, cloud has the potential to support a large amount of data as it has massive storage capacity and can perform complex computations. Considering the tremendous potential of these two technologies and the manner in which they complement one another, they have been integrated to form what is commonly referred to as the cloud of things (CoT). This integration is beneficial as the resulting system is more robust, intelligent, powerful, and offers promising solutions to the users. However, the new paradigm (CoT) is faced with a significant number of challenges that need to be addressed. This chapter discusses in detail various challenges like reliability, latency, scalability, heterogeneity, power consumption, standardization, etc. faced by the cloud of things.