Setting up Elastic Cloud for optimal performance involves configuring deployments for full observability, which includes enabling logs and metrics, setting up monitoring via Kibana, and configuring alerts for automated performance monitoring. The process begins with creating a deployment, updating configurations for Elasticsearch proxies, and enabling security audits, which can be adjusted for deeper traffic analysis. Users can monitor deployment health through Kibana's Stack Monitoring and investigate issues using the Observability Logs Stream, which provides real-time error tracking. Elastic Cloud's capabilities facilitate the consolidation and standardization of data, while Kibana Alerts automate notification processes, allowing for custom actions such as Slack notifications. These setups ensure that users are alerted to performance issues, providing them with the necessary tools and data views to troubleshoot effectively, while Elastic Cloud assists with maintenance and upkeep responsibilities.