This article takes a look at the city of the future, more specifically, the smart city. A smart city must be economically viable, which means competing in the global knowledge economy. Achieving and sustaining world-class levels of performance requires a deep-rooted culture of innovating, learning, collaborating and partnering, along with attracting and retaining a diverse population of knowledge workers and entrepreneurs. The greatest chance for success occurs when a smart city's core economic activity is clustered around a tightly focused domain. However, one major obstacle is a lack of financing. A wide array of governmental issues also needs to be addressed. While the promise of smart cities paints an exciting picture of the future, demons lurk in the shadows. First and foremost, cyber-attack is and always will be a major threat. A more subtle danger is the gradual tendency over time to abdicate control in deference to automation, especially as systems grow more complex and response times become shorter.