SLA: what does this agreement mean to me?

Sometimes managers in enterprises say that due to budget cuts, some solutions have to be abandoned. Meanwhile, the SLA is the basic document and standard that defines the rules of cooperation between the service provider and the user. Failure to sign an SLA can expose image and financial losses.

On the basis of the SLA, the scope of services is defined, which is then mutually verifiable. In this way, the service provider guarantees the optimal functioning of IT services, and the entrepreneur keeps his “hand on the pulse”, being able to perform his duties with peace of mind.

What is an SLA?

SLA is a standard in the IT services industry and telecommunications(cloud computing, servers, data center) and a formal outline of cooperation in difficult situations, such as data loss or failure. An SLA (Service Level Agreement) is a guaranteed service level agreement.

SLA: what elements should it contain?

Such documents may differ slightly depending on the scope of services, but there are some key elements:

1. Description of services provided. The starting point is to determine the customer’s needs and expectations: what service, application or equipment does it need, and what can the service provider offer. This is not easy, as no service or application can provide 100% availability. However, clearly outlining the possibilities and benefits for the customer will do the job. Communicating all elements of the contract, being accountable and open to compromise is key.
2. Determine detailed parameters, such as the time of service access. Service availability involves determining the ability of the system to correctly perform activities on a monthly basis. It is determined on a monthly or yearly basis, which is influenced by several factors: the failure rate of the hardware, network or also response and backup restore times. It is assumed that minimum service availability is about 99%. If we assume that network availability is 99.9% per year, this means that the service can be unavailable at most approx. 8 hours 45 minutes per year. Another parameter is to determine the key processes for the enterprise, within which the quality of service must be maintained.
3. Monitoring and reporting on the quality of services. You need to determine what your options will be for monitoring the quality of services. A good practice is a monthly, reliable report generated from the system for the user, preferably automatically.
4. Form of reporting service problems. The idea is to define the communication procedures between the provider and the user, i.e. channels of communication, e.g. email, report form, chat or phone number along with hours of availability and contact persons.
5. Determine the response time and resolution time. These 2 parameters differ: the first is the time when the service provider will proceed to fix the fault, and the solution time means the full restoration of services (given in days of the week and hours).
6. Consequences arising from violations of the SLA and forms of compensation. The service provider shall specify the conditions under which it will compensate for failure to provide services on time or other violations. This should describe the amounts and types of compensation in relation to violations in the SLA. The most common forms of consequences are contractual penalties for violations of contract terms or promotions for other services.

SLA a guarantee of service quality and security

IT services in an enterprise can be visually represented by a tree: at the top are the services provided to the business, lower the applications that support the business, and at the bottom the infrastructure and network. Defining the scope of activities, areas of responsibility and development of the SLA is the foundation of the operation for the other services, as well as the starting point for building good business relationships. An SLA is, in other words, a set of good practices for the business and the customer.

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