Covering all aspects of Information Technology Service Level Agreements (SLA's), this essential manual is a step-by-step guide to designing, negotiating and implementing SLA's into your organization. It reviews the disadvantages and advantages, gives clear guidance on what types are appropriate, how to set up SLA's and to control them.An invaluable aid to IT managers, data center managers, computer services, systems and operations managers.This unique, comprehensive guide is a major update of Andrew Hiles’ landmark 1991 guide to Service Level Agreements and 2000 Second Edition.

Most suppliers lose around 16% of their customers each year. The reason? Poor service — whether perceived or real.Any technology-based support service, whether in-house, contracted or outsourced, stands to be accused of being insensitive to the requirements of its customers (or users). Equally, customers of a support service may have unrealistic expectations of what can be reasonably provided.Service Level Agreements (SLAs) can overcome these gulfs. A Service Level Agreement can create harmony between parties and can prevent disputes between customers and suppliers. It can justify investment and identify the "right" quality of service. It can mean the difference between business success and failure.SLAs are potentially a strategic tool to align all support services (particularly IT) directly to business mission achievement. In the past, few organizations used them in this way. Armed with this book and the companion SLA FRAMEWORK, more and more businesses are now succeeding.Where are SLAs going? Increasingly business-focused. Increasingly measured in real-time. Simple documents that cover complex service infrastructures. Providing a competitive edge. Embracing penalties.The brave, who commit to tight SLAs and perform against them will win the commercial spoils. This book provides the knowledge and tools based on fifteen years of intensive development to ensure your enterprise is among the winners.

CONTENTSACKNOWLEDGMENTSFOREWORDPREFACE TO THE THIRD EDITION1 AN OVERVIEW OF SERVICE LEVEL AGREEMENTS: WHAT THEYCANAND CANNOT DO1.1 Introduction1.2 Service Level Agreements: Definition1.3 Serving the Business1.4 Availability1.5 Performance: Speed, Response and Accuracy1.6 Security1.7 Quality1.8 Service Culture1.9 But Why SLAs?CHECKLIST #1.1: Service Orientation2 THE MEASUREMENT OF SERVICE AVAILABILITY AND QUALITY:KEYMETRICS AND TECHNIQUES2.1 Availability: Optimizing Uptime2.2 Change Management2.3 Problem Management2.4 Critical Component Failure AnalysisTable 2.1: Critical Component Analysis - Cumulative AvailabilityTable 2.2: Contacts for Monte Carlo Analysis Tools2.5 Relationship with Security and Contingency Planning2.6 Scope of Service2.7 Service Products2.8 Service Hours2.9 Real Time Interactive Services2.10 Batch Services2.11 Output Arrangements2.12 Telecommunication and Network Services2.13 Outsourcing2.14 Applications Development Services2.15 Distributed Processing2.16 Help Desk and Technical Support2.17 Internet and Intranet Based Services2.18 Security Services2.19 Special Requirements2.20 Personal Computing2.21 Customer Self Computing2.22 Training3 HOW SERVICE LEVEL AGREEMENTS APPLY IN AN APPLICATIONSDEVELOPMENT ENVIRONMENT3.1 Applications Development3.2 Development Environment3.3 Feasibility Study3.4 System Analysis/Specification3.5 System Design3.6 Invitation to Tender/Contract3.7 Implementation3.8 Post-Implementation Review3.9 Service Orientation4 KEYS TO MEASURING AND MONITORING SERVICE; DESIGNING ANDIMPLEMENTING AN SLA4.1 Introduction to Service Measurement4.2 Measuring Performance and Availability4.3 Monitoring Tools and Their Use4.4 Application Monitoring4.5 Network Monitoring4.6 Case Study4.7 Systems Monitoring4.8 Satisfaction Monitoring4.9 The Service Management Toolkit4.10 Monitoring & Litigation4.11 Balancing Detail with Practicality4.12 The Balanced Scorecard4.13 What to include in a SLA4.14 Shell, Template, Model and Standard SLAs4.15 The Service Handbook4.16 Service Level Survey4.17 Charging for Services4.18 Infinite Capacity and 100% Availability?4.19 Realistic Limits to Service4.20 Penalty Clauses4.21 Planning For Change4.22 Organizational Issues4.23 Preparing the Ground4.24 Pilot Implementation4.25 Negotiating with the Customer4.26 Reporting Actual Performance Against SLA4.27 Service Review Meetings4.28 The Customer Review Meeting4.29 Service Motivation4.30 Extending SLAsAnnex One: Example Customer Satisfaction SurveyAnnex Two: Example Service Level SurveyAnnex Three: Terms of Reference for Marketing & Sales Manager and AccountsManagerAnnex Four: Monitoring Tools - Web Addresses5 THE DOWNSIDE RISK; ALTERNATIVES TO SERVICE LEVELAGREEMENTS; THE SLA PAYOFF5.1 SLAs: Reasons for Failure5.2 Alternatives to SLAs5.3 Performance Indicators5.4 Availability and Response Targets5.5 Benchmark Checks5.6 Business Satisfaction Analysis5.7 The SLA Payoff: A Success Story5.8 Where Next?5.9 ConclusionAPPENDICESAPPENDIX A: SERVICE LEVEL AGREEMENT CHECKLISTAPPENDIX B: Example Desktop Support MetricsAPPENDIX C: TRADITIONAL, IT-ORIENTED SLAAPPENDIX D: Example Simple Development SLAAPPENDIX E: Checklist for Outsourcing & Facilities ManagementAPPENDIX F: EXAMPLE DESKTOP SUPPORT SLABIBLIOGRAPHYABOUT THE AUTHOROTHER SLA TOOLS AND RESOURCES BY ANDREW HILES==================================LIST OF FIGURESFIGURE 1.2: SERVING THE BUSINESSFIGURE 2.2: DEFINITIONS FOR TELECOMMUNICATION SERVICE LEVELSFIGURE 3.1: DEVELOPMENT USING FPAFIGURE 3.2: DEVELOPMENT ENVIRONMENTFIGURE 4.1: SERVICE MANAGEMENT TOOLKITFIGURE 4.2: EXAMPLE OF BALANCED SCORECARDFIGURE 4.3: THE ONE PAGE SLA FORMATFIGURE 4.4: THE ONE PAGE SLA FORMATFIGURE 4.5: COMPONENTS OF SERVICE LEVEL MANAGEMENTFIGURE 4.6: CHARGING FOR COMPUTING SERVICES - SCHEMATICFIGURE 4.7: BACK-TO-BACK SLASFIGURE 4.8: COST OF REAL-TIME SERVICE OUTAGESFIGURE 4.9: HIERARCHY FOR SLA IMPLEMENTATIONFIGURE 4.10: CUSTOMER ACCOUNT MANAGER: LIAISON POINTSFIGURE 4.11A: MONTHLY REPORTFIGURE 4.11B: THE SAME DATA, WEEKLY REPORTFIGURE 4.11 : THE SAME DATA, DAILY REPORTFIGURE 4.12: SLA REPORTING SCHEMATICFIGURE 4.13: GLOBAL SERVICE REPORT - SCHEMATICFIGURE 4.14A: SAMPLE SLA REPORTFIGURE 4.14B: BATCH SERVICE LEVEL REPORTFIGURE 4.15: COMPUTING CENTER - MAINFRAME AVAILABILITY 0800 TO2000 HOURSFIGURE 4.13: COMPONENTS OF SERVICE LEVEL MANAGEMENTFIGURE 5.1: EXPLICIT SERVICE TARGETSFIGURE 5.2A: A CAD BENCHMARKFIGURE 5.2B: CAD RESPONSE - BENCHMARK DRAWING TIMEFIGURE 5.2C: CAD RESPONSE - BENCHMARK DRAWING TIMEFIGURE 5.2D: CAD RESPONSE - BENCHMARK DRAWING TIME

Most suppliers lose around 16% of their customers each year. The reason? Poor service — whether perceived or real.Any technology-based support service, whether in-house, contracted or outsourced, stands to be accused of being insensitive to the requirements of its customers (or users). Equally, customers of a support service may have unrealistic expectations of what can be reasonably provided.Service Level Agreements (SLAs) can overcome these gulfs. A Service Level Agreement can create harmony between parties and can prevent disputes between customers and suppliers. It can justify investment and identify the "right" quality of service. It can mean the difference between business success and failure.SLAs are potentially a strategic tool to align all support services (particularly IT) directly to business mission achievement. In the past, few organizations used them in this way. Armed with this book and the companion SLA FRAMEWORK, more and more businesses are now succeeding.Where are SLAs going? Increasingly business-focused. Increasingly measured in real-time. Simple documents that cover complex service infrastructures. Providing a competitive edge. Embracing penalties.The brave, who commit to tight SLAs and perform against them will win the commercial spoils. This book provides the knowledge and tools based on fifteen years of intensive development to ensure your enterprise is among the winners.