This paper presents a method for achieving optimization in clouds by using performance models in the development, deployment and operations of the applications running in the cloud. We show the architecture of the cloud, the services offered by the cloud to support optimization and the methodology used by developers to enable runtime optimization of the clouds. An optimization algorithm is presented which accommodates different goals, different scopes and timescales of optimization actions, and different control algorithms. The optimization here maximizes profits in the cloud constrained by QoS and SLAs across a large variety of workloads.