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ABC: An Introduction to Service-Level Agreements (SLAs)

SLAs are a critical component of any vendor contract. Beyond listing expectations of service type and quality, an SLA provides remedies when requirements aren't met.

By Lauren Gibbons Paul

PAGE 4

• What is an SLA?


• Why is it important to have an SLA?


• Which side should prepare the SLA?


• What are the basic components of an SLA?


• What about indemnification?


• Are SLAs transferable to a third-party provider?


• How can I be sure the service provider is meeting the service levels set out in the SLA?


• What is SLA monitoring and verification?


• What are some SLA metrics?


• What should I consider when selecting metrics for my SLA?


• What are the typical uptime provisions for an IT network services provider?


• Should we review our SLAs periodically?

Should we review our SLAs periodically?

In a word, yes. The service-level commitments contained in the SLA are developed from estimates of current and desired service levels that are subject to fluctuation. Accordingly, the SLA should be viewed as a dynamic document and should be periodically reviewed and changed when the following events occur:

• The environment has changed



• The client's expectations and/or needs have changed



• Workloads have changed



• Better metrics, measurement tools and processes have evolved.

When it comes to SLAs, it is worth spending the time to get them right. As with any long-term relationship, it is best to have the expectations communicated as clearly as possible before the relationship begins. And if things do break down, it helps to have the remedy there in black and white without the need to renegotiate.

Lauren Gibbons Paul has more than 15 years of experience as a writer and editor for leading business and technology publications, including CIO, CSO, Darwin, Managing Automation and Network World. She has also done research assignments for a number of well-known analyst firms.

 

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