Are you actually talking about developing your own device cloud infrastructure or just initial testing how the hardware will behave working in an IoT ecosystem? Honestly, this is a massive topic.
If you just want to test how the hardware would behave i.e persistent connectivity, command reactions, communication speed, heartbeats, failure recovery, etc. you are more than welcome to try my little testing cloud it's built for that purpose (link in my profile) and it's free. Ping me a message there, happy to advise.
Anyway,
Definitely step 1 is deciding on communication protocol it should be persistent and real time: WebSockets, MQTT, UDP...
Decide on a server language you will use, implement the protocol(s) on server and devices and start pinging. First challenge will be to maintain that connection and everything needed to restore it if lost on either side.
How to simulate the hardware?...don't...use the real stuff as much as you can, it's tedious and slow but it's the only way if you want to have a robust product.
I think it would be easier if you could post a more specific question and maybe say what your thoughts/knowledge/research is so far.