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The impact of the Internet of Things (IoT) on the evolution toward next generation smart environments (e.g., smart homes, buildings, and cities) will largely depend on the efficient integration of IoT and cloud computing technologies. With the predicted explosion in the number of connected devices and IoT services, current centralized cloud architectures, which tend to consolidate computing and storage resources into a few large data centers, will inevitably lead to excessive network load, end-to-end service latencies, and overall power consumption. Thanks to recent advances in network virtualization and programmability, highly distributed cloud networking architectures are a promising solution to efficiently host, manage, and optimize next generation IoT services in smart environments. In this paper, we mathematically formulate the service distribution problem (SDP) in IoT-Cloud networks, referred to as the IoT …