sla a universal panacea qmk

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SLA : A Universal Panacea ? Alfredo Saad IT Outsourcing Consultant [email protected]r

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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.

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Page 1: Sla a universal panacea qmk

SLA : A Universal Panacea ?

Alfredo SaadIT Outsourcing Consultant

[email protected]

Page 2: Sla a universal panacea qmk

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)

[email protected]

Page 3: Sla a universal panacea qmk

AGENDA

- Service Level Management- Concepts- Objectives

- SLA: Technical x Business Aspects

- SLA in an IT Outsourced Environment

- Causes of Failed Implementations

- Recommendations

[email protected]

Page 4: Sla a universal panacea qmk

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

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Page 5: Sla a universal panacea qmk

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.

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SERVICE LEVEL MANAGEMENTCONCEPTS

Page 6: Sla a universal panacea qmk

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.

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SERVICE LEVEL MANAGEMENTCONCEPTS

Page 7: Sla a universal panacea qmk

- Support business needs

- Manage expectations

- Optimize resources allocation and utilization

- Keep costs under control

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SERVICE LEVEL MANAGEMENTOBJECTIVES

Page 8: Sla a universal panacea qmk

- 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)

[email protected]

SERVICE LEVEL MANAGEMENTOBJECTIVES

Page 9: Sla a universal panacea qmk

- 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)

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SERVICE LEVEL MANAGEMENTOBJECTIVES

Page 10: Sla a universal panacea qmk

- 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)

[email protected]

SERVICE LEVEL MANAGEMENTOBJECTIVES

Page 11: Sla a universal panacea qmk

SLA: TECHNICAL X BUSINESS ASPECTS

Availability

Response time

[email protected]

Page 12: Sla a universal panacea qmk

[email protected]

Availability

Response time

SLA: TECHNICAL X BUSINESS ASPECTS

Page 13: Sla a universal panacea qmk

RelativeCost

Availability Percentage

1

10

100

90.000 %

99.999 %

[email protected]

SLA: TECHNICAL X BUSINESS ASPECTS

Page 14: Sla a universal panacea qmk

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 %

Page 15: Sla a universal panacea qmk

10

100

90.000 %

99.000 %

99.900 %

99.990 %

99.999 %

7.2 hours

43 minutes4.3 minutes

[email protected]

SLA: TECHNICAL X BUSINESS ASPECTS

RelativeCost

Availability Percentage

72 hours 26 seconds

Maximum unavailability time during a 30-day month

1

Page 16: Sla a universal panacea qmk

10

100

90.000 %

99.000 %

99.900 %

99.990 %

99.999 %

7.2 hours

43 minutes4.3 minutes

[email protected]

SLA: TECHNICAL X BUSINESS ASPECTS

RelativeCost

Availability Percentage

72 hours 26 seconds

Maximum unavailability time during a 30-day month

1

Page 17: Sla a universal panacea qmk

Availability

Response Time

[email protected]

SLA: TECHNICAL X BUSINESS ASPECTS

Page 18: Sla a universal panacea qmk

Initial Business Transactions Volume low

Initial Response Time good

Initial Performance Curve

1

Business Transactions

Volume

Response

Time

[email protected]

SLA: TECHNICAL X BUSINESS ASPECTS

Page 19: Sla a universal panacea qmk

Response Time bad

Business Transactions Volume high

1

2

[email protected]

SLA: TECHNICAL X BUSINESS ASPECTS

Initial Response Time good

Response

TimeInitial Performance

Curve

Initial Business Transactions Volume low

Business Transactions

Volume

Page 20: Sla a universal panacea qmk

Business Transactions Volume constrained

Response Time acceptable

3

1

2

[email protected]

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

Page 21: Sla a universal panacea qmk

Final Performance Curve

3

1

2

[email protected]

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

Page 22: Sla a universal panacea qmk

Final Performance Curve

3

1

2

[email protected]

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

Page 23: Sla a universal panacea qmk

Final Performance Curve

3

1

2

[email protected]

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

Page 24: Sla a universal panacea qmk

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

[email protected]

Page 25: Sla a universal panacea qmk

- 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

Page 26: Sla a universal panacea qmk

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

[email protected]

Page 27: Sla a universal panacea qmk

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

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