Cloud computing plays a pivotal role in data storage and online services, offering benefits such as easy access, on-demand storage, scalability, and cost-efficiency. Its rapidly evolving technologies can enhance the security of the Internet of Things (IoT) and Cyber-Physical Systems (CPS) against cyber threats. Given the increasing prevalence of sophisticated malware, traditional detection methods are often inadequate due to advanced evasion techniques. This article provides a comprehensive review of cloud-based malware detection technologies and explores the use of cloud computing in safeguarding IoT and critical infrastructure. It evaluates the pros and cons of cloud environments for malware detection and introduces a deep learning and data extraction methodology for detecting cloud-based malware. Additionally, it discusses recent research on malware propagation issues and compares various detection approaches, identifying their strengths and weaknesses. The study's findings offer valuable insights for addressing current challenges in malware research.