This chapter considers the topic of improving operational efficiency of cloud-based applications. An efficient process achieves its objectives with the minimum amount of time, money, people or other resources. The focus of the chapter is to minimize cloud service customers (CSCs) direct resource inputs to deliver application service to cloud users in their service operation and service transition phases, thereby maximizing the CSC's application service efficiency. It focuses the maximizing the utilization efficiency of application and software components, infrastructure, management, orchestration, functional components offered as-a-service, and staff. Rapid elasticity enables the online service capacity offered by the CSC to be rapidly changed to whatever level the CSC desires. The chapter also applies lean thinking to simultaneously derisk a CSC's application service innovation and reduce their operating expenses without compromising the service reliability, latency, quality, and availability delivered to their end users. An inadequate online capacity event occurs when instantaneous user demand outstrips instantaneously available online application capacity.