This article gauges Saudi universities’ readiness to integrate the Internet of Things (IoT) in knowledge management (KM) and identifies the challenges relating to its use. A descriptive–analytical approach was used to discuss the concepts, development, and general structure that characterize the IoT and its related challenges and to find ways to address them. This study used a three-axis questionnaire, which was applied to 275 faculty members and information technology officials in Saudi universities. The results revealed that a strategy related to the development of infrastructure and the provision of equipment and applications to deal with and analyze big data is needed, besides the conviction of the faculty and specialists in its potential in developing the teaching and learning environment in universities and providing unique research by interlinking the network of laboratories and research and training laboratories. The results also revealed that its effects on the university learning environment are gender, rank, and experience agonistic. Finally, 12 main criteria and 44 sub-applications were reached to manage the smart campus’s information generated by the IoT.