With the rapid expansion of cloud computing and the pervasive growth of IoT across industries and educational sectors, the need for efficient remote data management and service orchestration has become paramount. Web services, facilitated by APIs, offer a modular approach to integrating and streamlining complex business processes. However, real-time monitoring and optimal service selection within large-scale, cloud-based repositories remain significant challenges. This study introduces the novel Improved Eagle Strategy (IES) hybrid model, which uniquely integrates bio-inspired optimization with clustering techniques to drastically reduce computation time while ensuring highly accurate service selection tailored to specific user requirements. Through comprehensive NetLogo simulations, the IES model demonstrates superior efficiency in service selection compared to existing methodologies. Additionally, the IES model’s application through a web dashboard system highlights its capability to manage both functional and non-functional service attributes effectively. When deployed on real-time IoT devices, the IES model not only enhances computation speed but also ensures a more responsive and user-centric service environment. This research underscores the transformative potential of the IES model, marking a significant advancement in optimizing cloud computing processes, particularly within the IoT ecosystem.