The limits of SLAs
 
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Service-level agreements are generally thought to be a good thing - and you won't get any argument here - but it is important to be aware of what they can and cannot do for you.
If you are buying a VPN service, you will want a guarantee that the network will be available, that it will lose no more than a certain number of packets, and that the delay will be within an acceptable level. You also want guarantees that things will be fixed within a certain time after something does go wrong. If not, you get credits against your monthly bill.
That's great if you approach the problem of network quality from a financial point of view. But corporate network executives probably approach it with the goal of providing the most reliable service they can for their end users. No amount of SLA promises can guarantee that reliable service.
A sound service-provider network architecture can indicate that a service will be reliable. An aggressive support team can indicate that breaks will be repaired quickly. A list of satisfied customers you have talked to can demonstrate the provider performs well.
At the recent VPNCon in Boston, one panelist likened SLAs to prenuptial agreements: They are written before the marriage and only come into play when something goes wrong.
As a potential customer of a VPN service, extend that metaphor. Just as in a marriage, a service contract requires trust based on an assessment of how committed the other party is to the union. And just as a married couple hopes they'll never use their prenuptial agreement, the hope should be that the customer never has to use the SLA.
The bottom line here is SLAs are a way to recoup money when a VPN service goes down, but that cannot replace the frustration, loss of productivity and even loss of revenue that a downtime creates.
The VPNCon panelist offered this sound advice: Spend more time assuring that your VPN service provider runs a sound network and will act promptly to correct problems than you do haggling over your SLA. The time you spend on the former can reduce the need for the latter.
RELATED LINKS
Network Fusion Research: SLAs
Negotiating An Effective Service Level Agreement, a two-part guide
from Gilbert & Tobin Law
SLA Savvy, Buzz Issue
Network World, 09/27/99
An SLA is not a substitute for engineering quality service into your network
Network World on Groupware and Messaging, 09/22/99
Trouble in SLA monitoring paradise
Network World, 08/14/00
