Any meaningful contract without associated ALS (verified by legal advisors) is open to deliberate or involuntary interpretations. AlS protects both parties in the agreement. A Service Level Contract (SLA) is a documented agreement between a service provider and a customer that identifies both the required services and the expected level of service. The agreement varies by supplier, service and industry. Select the measures that motivate good behavior. The first objective of any metric is to motivate the corresponding behaviors on behalf of the client and service provider. Each side of the relationship tries to optimize its actions to achieve the performance goals defined by the metrics. First, focus on the behavior you want to motivate. Then test your metrics by placing yourself instead of the other side. How would you optimize your performance? Does this optimization support the results initially desired? Service availability: The time available to use the service. This can be measured using the time window, z.B 99.5% availability between hours 8 a.m. and 6 p.m. and more or less availability at other times.
E-commerce processes are generally extremely aggressive. 99.999 percent operating time is an unusual requirement for a website that generates millions of dollars per hour. This last point is crucial. Service requirements and supplier functions are changing, so it is necessary to ensure that ALS is kept up to date. This is a service level agreement (SLA) between [customer] and [service provider]. This document identifies the required services and the expected level of service between MM/DD/YYYY to MM/DD/YYYY. IT service organizations that manage multiple service providers may wish to enter into Operational Level Agreements (OLA) that explain how some parties involved in the IT service delivery process interact with each other to maintain performance. Most service providers have standard SLAs – sometimes several, which reflect different levels of service at different prices – which can be a good starting point for negotiations. However, these should be audited and modified by the client and the lawyer, as they are generally favourable to the supplier. Before you subscribe to an IT department, ALS must be carefully evaluated and designed to achieve maximum service value from the end-user and business perspective.
Service providers should be mindful of the differences between internal spending and client-focused outcomes, which can help define service expectations. AlS should have two components: services and management. Here you define the responsibilities of the service provider and the customer. Although your ALS is a documented agreement, it doesn`t have to be long or too complicated. It is a flexible and living document. My advice? Create one with this model and examples and advise your clients for any perceived shortcomings. As unforeseen cases are unavoidable, you can re-call and optimize ALS if necessary. Cloud providers are more reluctant to modify their standard SLAs because their margins are based on providing goods services to many buyers.
However, in some cases, customers are able to negotiate terms with their cloud providers. A Service Level Contract (SLA) defines the level of service a customer expects from a provider and defines the metrics on which that service is measured and corrective actions or penalties, if they exist, if agreed service levels are not met.