sla a universal panacea qmk
DESCRIPTION
The implementation of a solid Service Level Management discipline in an IT environment is a relevant step to assure an effective alignment between the IT area and the business areas of an organization. Specific conditions applicable to outsourced IT environments are also discussed.TRANSCRIPT
SLA: A UNIVERSAL PANACEA ?
“ SLA’s may sound like a universal panacea, but there is a number of things a SLA cannot compensate for. An inadequate definition of business objectives, for instance. Nor it can compensate for lack of standards. SLA’s cannot substitute for poor customer management or poor support management ”
(Andrew Hiles)
AGENDA
- Service Level Management- Concepts- Objectives
- SLA: Technical x Business Aspects
- SLA in an IT Outsourced Environment
- Causes of Failed Implementations
- Recommendations
SERVICE LEVEL MANAGEMENTCONCEPTS
Undoubtedly tools are vital, but they do not
guarantee, by themselves, a high-
level services qualityOnly when adequately used as part of a Service Level
Management process they will become an important element towards the achievement of
effective results
If performance indicators are inadequate or if their monitoring is ineffective, the service level management process will become a tough task.
Such problems will result in late and merely reactive actions, in such a way that decisions will be already made under the pressure of unsatisfied users .
From a management point-of-view, this will mean increasing costs and a scenario of growing users frustration, concerning their perception about the real capability of the IT area to support them.
SERVICE LEVEL MANAGEMENTCONCEPTS
Continuous monitoring of performance indicators will permit an early detection of problems still forming and their correction before their effects become visible to the end user community.
A solid Service Level Management process makes it possible a more transparent relationship between the IT area and the business areas, contributing to alleviate any stress that may exist.
SERVICE LEVEL MANAGEMENTCONCEPTS
- Support business needs
- Manage expectations
- Optimize resources allocation and utilization
- Keep costs under control
SERVICE LEVEL MANAGEMENTOBJECTIVES
- Support business needs
“ SLA’s force the support service to orient itself to providing cost-effective service solutions to business needs and to support the business plan ”
(Andrew Hiles)
SERVICE LEVEL MANAGEMENTOBJECTIVES
- Manage expectations- Optimize resources allocation and utilization
“ Without lining up customer expectations with IT’s ability to realistically meet those expectations, IT stands little chance of breaking out the first circle of ‘ service bureau hell ’ : unreliable expectations matched to limited resources ” (Christopher Koch)
SERVICE LEVEL MANAGEMENTOBJECTIVES
- Keep costs under control
“ The biggest benefit of an SLA in my mind is it makes the business aware that there’s a relationship between support and dollars. This way they can make a better business decision about what support is required and how much it will cost ”
(Tim Parsons)
SERVICE LEVEL MANAGEMENTOBJECTIVES
RelativeCost
Availability Percentage
1
10
100
90.000 %
99.999 %
SLA: TECHNICAL X BUSINESS ASPECTS
10
100
72 hours 26 seconds
Maximum unavailability time during a 30-day [email protected]
SLA: TECHNICAL X BUSINESS ASPECTS
RelativeCost
Availability Percentage
1
10
90.000 %
99.999 %
10
100
90.000 %
99.000 %
99.900 %
99.990 %
99.999 %
7.2 hours
43 minutes4.3 minutes
SLA: TECHNICAL X BUSINESS ASPECTS
RelativeCost
Availability Percentage
72 hours 26 seconds
Maximum unavailability time during a 30-day month
1
10
100
90.000 %
99.000 %
99.900 %
99.990 %
99.999 %
7.2 hours
43 minutes4.3 minutes
SLA: TECHNICAL X BUSINESS ASPECTS
RelativeCost
Availability Percentage
72 hours 26 seconds
Maximum unavailability time during a 30-day month
1
Initial Business Transactions Volume low
Initial Response Time good
Initial Performance Curve
1
Business Transactions
Volume
Response
Time
SLA: TECHNICAL X BUSINESS ASPECTS
Response Time bad
Business Transactions Volume high
1
2
SLA: TECHNICAL X BUSINESS ASPECTS
Initial Response Time good
Response
TimeInitial Performance
Curve
Initial Business Transactions Volume low
Business Transactions
Volume
Business Transactions Volume constrained
Response Time acceptable
3
1
2
SLA: TECHNICAL X BUSINESS ASPECTS
Response Time bad
Initial Response Time good
Response
TimeInitial Performance
Curve
Business Transactions Volume high
Initial Business Transactions Volume low
Business Transactions
Volume
Final Performance Curve
3
1
2
SLA: TECHNICAL X BUSINESS ASPECTS
Response Time acceptable
Response Time bad
Initial Response Time good
Response
Time
Business Transactions Volume constrained
Business Transactions Volume high
Initial Business Transactions Volume low
Business Transactions
Volume
Initial Performance Curve
Final Performance Curve
3
1
2
SLA: TECHNICAL X BUSINESS ASPECTS
Response Time acceptable
Response Time bad
Initial Response Time good
Response
Time
Business Transactions Volume constrained
Business Transactions Volume high
Initial Business Transactions Volume low
Business Transactions
Volume
Initial Performance Curve Continuous
Improvement Process
Final Performance Curve
3
1
2
SLA: TECHNICAL X BUSINESS ASPECTS
Response Time acceptable
Response Time bad
Initial Response Time good
Response
Time
Business Transactions Volume constrained
Business Transactions Volume high
Initial Business Transactions Volume low
Business Transactions
Volume
Initial Performance Curve Continuous
Improvement Process
Final Response Time very good
4
Final Business Transactions Volume
very high
SLA IN AN IT OUTSOURCED ENVIRONMENT
- Desired capabilities of the selected provider
- High maturity on systems management disciplines
- High coordination capability to integrate the execution of the processes among all disciplines
- High integration capability in an environment with multiple providers
- High capability to continuously improve outsourced functions processes
- High capability to proactively detect and solve problems
- Quick and accurate corrective problem diagnosis and root-cause analysis
- Relevant clauses in an IT outsourcing services contract
- Service level Agreements unambiguously defined
- Clear and objective targets for continuous improvement
- Bonus and penalties mechanism
- Contract cancellation due to bad performance
- Accurate demonstration of consumed services volumes
- Additional services request process [email protected]
SLA IN AN IT OUTSOURCED ENVIRONMENT
CAUSES OF FAILED IMPLEMENTATIONS
- Client organization (IT or business areas) do not clearly establish their objectives, plans and priorities
- Insufficient involvement of management and executive levels
- Business areas do not adequately quantify the business impact of SLAs not accomplished by the provider
- IT area describes SLAs with technical terms which business areas cannot comprehend and which cannot be easily associated to business impacts
RECOMMENDATIONS
- Service Level Agreements must ...
- ... make it possible an immediate association to the client business and to the satisfaction of its users
- ... be formulated in such a way that permanently encourage the best cost/benefit ratio on service provision
- ... be continually reevaluated to reflect the dynamic objectives and priorities of the client business needs