Getting ready for SLAs

While it is true that organizations should try to establish service-level agreements as soon as possible, it is a serious mistake to begin the process before your organization is ready. If you are considering negotiating SLAs, you need to make sure you are prepared.

Before you can negotiate an SLA, it is essential that there be a solid management infrastructure in place. That means all of the management functions are there, in some form, for each of the resources used to deliver the service.

While space does not permit a detailed examination of each of the management functions, they can be thought of in terms of the ISO model (fault, performance, accounting, configuration and security). This requires an appropriate mix of tools, processes and personnel. For example, each of the resources must be actively monitored so that when a problem occurs, the appropriate personnel can be notified and can take action immediately to resolve it.

Fault management is the highest profile of the management functions, followed closely by performance management - but I want to point out the importance of asset management. Asset management is an important subset of the accounting dimension of management and is unfortunately often overlooked. Without asset information, efforts to improve service will be seriously hindered.

This newsletter has carried several articles by Dennis Drogseth on the subject of asset management. They are available on the Network World Fusion Web site at:

www.nwfusion.com/newsletters/nsm/index.html

Another prerequisite to negotiating SLAs is that you know the capabilities of the resources used to deliver the service. You must know what level of service is currently being delivered. (Remember, when considering this point, to think in terms of the user experience.) You also need to know what would be required for you to deliver a higher level of service. Is it a matter of changing processes, or will additional resources (hardware, software, personnel, outside services, etc.) be required?

The information gathered in satisfying this prerequisite equips you to negotiate more effectively and knowledgeably with your client. If you enter into negotiations without knowing what levels of service can be delivered, then you are doomed to negotiate an SLA and make commitments on the basis of wishful thinking. That is definitely not a recipe for success.

The third major prerequisite is the support of upper management. Upper managers need to give their blessing and support to the negotiations. In doing so, they lend some of their power to the negotiation process. While it is possible to negotiate SLAs without executive support, doing so is risky and should be undertaken only as a last resort. Also, negotiations without support of your management are a reasonable option only if you have a very good relationship with the client.

Start with a service where the prerequisites have been satisfied. That makes the likelihood of successfully negotiating an effective agreement much higher.

Second, if this is the first SLA for your organization, start small. Start with a "backwater" service, one that is of relatively low priority to the organization. This will mean that the SLA and the negotiations to create it will have less importance and visibility in your organization, and the negotiations are less likely to be emotionally charged. Once you have been successful, you can move forward with SLAs addressing the important, high-visibility services.

One last bit of advice I can offer is that if this is really the first SLA for your organization, either get some training before entering the process, or get professional help to supplement your resources in negotiation.

Dennis Drogseth is a director with Enterprise Management Associates, a leading analyst and market research firm based in Boulder, Colorado, focusing exclusively on all aspects of enterprise management. Dennis has extensive experience in network management platforms and products and is researching trends in management software and changing IT roles internationally. His 18-plus years of experience in high-tech includes positions at IBM and Cabletron. He has been quoted in the press and is a speaker at industry events. He can be reached via e-mail.

Audrey Rasmussen is a research director with Enterprise Management Associates in Boulder, Colorado, a leading analyst and market research firm focusing exclusively on all aspects of enterprise management. Audrey has more than 20 years of experience working with distributed systems, applications and networks. Her current focus at EMA is e-business, SMB/SME and MSPs. She can be reached via e-mail.

Enterprise Management Associates in Boulder, Colorado, is a leading analyst and market research firm focusing exclusively on all aspects of enterprise management software and services.