1. Develop a Data Center Infrastructure SLA

2. Introduction
60% of IT departments do not have a formal data center SLA, but recognize that the business has informal service expectations. Organization’s that measure, monitor, and report on infrastructure service level metrics are more successful at managing data center infrastructure service levels - whether or not IT chooses to formally document the data center SLA with the business.
This solution set is designed for:
IT Managers in small to mid-sized organizations.
IT departments that do not have a data center infrastructure SLA in place with the business.
IT departments that have a data center infrastructure SLA in place with the business, but it is unrealistic or unsuccessful.
IT departments that wish to create an internal data center SLA.
This solution set will provide you with:
A comprehensive tool to take you through the process of inventorying services provided, choosing metrics, monitoring, and reporting within your data center infrastructure environment.
A step-by-step process to define and manage infrastructure service levels, without necessarily formalizing in an SLA.
A sample SLA document to help you get started formalizing the SLA with the business.
This solution set will take IT decision makers through the following process, to create an internal SLA that best fits the needs and requirements of IT and the business:
Assess the need for an SLA
Identify services and metrics
Manage service level targets
Formalize the SLA with the business

3. Executive Summary Assess the Need for an SLA
Identify Services and Metrics
Manage Service Level Targets
Formalize the SLA with the Business
While 60% of organizations do NOT have a formal data center infrastructure SLA implemented, they agree that the business has informal service level expectations.
SLA or not, organizations that are successful in managing service levels have a formal process in place to measure, monitor and report service levels.
SLAs are implemented at organizations of all sizes, not just large enterprises. The situation drives the need for an SLA, making it critical to understand the triggers.
Inventory all applications and infrastructure, but focus on services and transactions that are critical to the business.
Identify and implement metrics that match service level and business alignment goals to maximize effectiveness. Start with critical infrastructure components that are correlated with business performance.
Create reasonable targets that are based on historical service-level data, to avoid making promises that can’t be kept.
Organizations that monitored and recorded activity at least weekly experienced less downtime.
Be selective in reporting to the business. Report any service levels beyond a variance of 5% (good or bad).
Provide analysis around any metrics that are reported to the business, and describe planned resolutions for services that are not meeting targets.
Keep up to date. Successful IT shops review metrics and targets at least quarterly.
Ensure that an SLA is necessary before making the commitment. Consistent service levels can be accomplished without a handshake with the business.
IT Pros that measured User Satisfaction were 34% more effective in managing service levels.
Organizations that expended more effort in surveying business needs and conducting a gap analysis had more success with their SLA.
Conduct a quarterly review meeting within IT to review and update the SLA.

4. Section in Brief Assess the Need for an SLA 1
A formally documented SLA is not a requirement for every organization. However, regardless if IT is formalizing the infrastructure SLA , underlying service level management processes should be optimized to increase performance.
This section will help you to:
Understand data center infrastructure SLAs
Decide when to implement an infrastructure SLA
Decide how formal the SLA needs to be to fit the needs of IT and the organization
Assess the Need for an SLA 1
Identify Services and Metrics
Manage Service Level Targets
Formalize the SLA with the Business

5. Prepare to deal with service level expectations from the business whether or not you have a formally documented SLA c
An SLA can be used as an instrument to clearly define what the infrastructure group’s
obligations and commitments are to the organization’s business leaders.
While 60% of organizations do NOT have a formal data center infrastructure SLA implemented, they agree that the business has informal SLAs.
This reveals an absolute gap between the business expectations and what is being delivered by IT. The disconnect caused by the gap can results in a myriad of problems regarding costs, funding, expectations, and success.
Not all IT departments require a formal SLA with the business, it is best practice to understand the service levels being provided by IT and improve where the gap exists. This solution set will take you through the process of informally creating an infrastructure SLA. “
Effort to formalize SLA ensures an alignment with business outcomes & improved service.
How can you fix it if you don't know its broke except from a rumor you heard?
- IT Manager,
Government Organization
An infrastructure SLA reflects the department’s processes and capabilities – regardless if it is formally documented. While most shy away from the SLA, they should not shy away from the process used to develop and manage an SLA. To be truly effective, an SLA should focus on service levels to the customers/users, not just keeping the lights on. “

6. The process is really what you’re after; SLA development & management is more important than the document itself
Not all organizations require a formal infrastructure SLA & commitment to the business, but the requisite processes to create an SLA will lead IT to improved service management, SLA or not.
Optimize Service Level Management
Identify Infrastructure Services
Identify Relevant Metrics
Understand capabilities and establish targets
Monitor performance targets
Report and Review
The SLA Development & Management Process “
We monitor everything and have critical things that we do want to make available to the business (24/7 type applications).
But we realized that, although we had ways of knowing when we had issues, and even before the user saw an issue, and we could correct it, we didn’t have a good way of measuring actual in-user access to the system. So we had that challenge to begin with.
We ultimately decided that setting up an SLA is kind of secondary to having all your other ducks in a row.
- Director of IT, Manufacturing
Start Here
Formally Document the SLA ”

7. Infrastructure SLA development & management processes help IT to:
SLAs are more then just a document; processes improve IT’s overall performance & visibility
What do your peers say about the benefits of SLAs?
Infrastructure SLA development & management processes help IT to: ? ? ? ? ? ?
Better manage business leaders’ service expectations
Ensure alignment of IT performance metrics and results
Reduce infrastructure downtime
Ensure service levels match business needs
Adopt and monitor continuous service level improvement
Make a case for IT funding by providing hard numbers and requirements
Reduce IT costs with awareness and better infrastructure management
Not having an SLA is equivalent to driving a car without a dashboard. Sooner or later you are going to need the vital information.
-VP of IS, Healthcare Industry
So far, SLA is the best way to protect and improve IT investments and help to reach business goals.
- Network Admin, Manufacturing Industry
Measuring to an SLA will create a focus, and drive improved performance.
- IT Manager, Media Corporation
Being able to measure effectively, and communicate to executive leaders how well our environment performs, goes a long way to ensuring that we can get funding and support for things that we need.
- IT Manager, Software Dev. Company “

8. Why are your peers really not implementing an SLA?
Bust myths associated with SLA avoidance; The truth is that SLA development & management processes improve performance
Common SLA Myths & Objections:
Why are your peers really not implementing an SLA?
The process of formalizing and documentation SLAs is time consuming? Many organizations say they don’t have the time to commit to the process of formalizing an SLA . However, engaging in SLA processes significantly reduced downtime ; freeing up more time where IT would be fighting fires.
The resources required to develop and maintain a formal SLA can be better used elsewhere? Yes, IT is busy, but IT departments that implemented an SLA had significantly better alignment of infrastructure service levels and business needs; freeing up resources to work on other initiatives.
SLAs contain unrealistic expectations from the business? A documented SLA or performance targets that are not based on the department’s actual capabilities is not a true SLA. IT departments that measured, monitored and reported on metrics were able to negotiate more with the business based on cost. Understanding the gaps between business expectations and cost is the first step to a realistic SLA. ? ? ? ? ? ? ? “
Business is not asking for it and we have a history of excellent uptime.
- Asst VP, Technical Services/Agriculture
We need to build a culture first.
-IT Manager, Health Care Provider
An Informal (or at least internal within IT) SLA is sufficient to understand and set expectations.
-IT Director, Manufacturing Industry
We don't do a good enough job of measuring our current service levels so there is concern about entering into SLAs that we can't support.
-CTO, Entertainment Organization
Our CIO believes the unwritten SLA gives him more flexibility.
-Analyst, Manufacturing Industry
What prevents IT from developing an SLA?
Not Enough Time
39%
Lack of Internal Expertise “
39%
Impact Our Service Levels
27%
We Don’t Need a Formal SLA
23%

9. Implement the SLA process for more effective service level management, regardless of your organization’s size
Size doesn’t matter, it’s the symptoms that come with size that cause the difference
Size predicts whether IT adopts an SLA and how many metrics are tracked. Large enterprises are more likely to adopt an SLA and track more metrics.
Size does NOT predict how effectively IT manages services or how much effort is put forth on formalizing the SLA. Those that expend more effort into the SLA are more effective at managing service levels.
Size does NOT predict how formal the SLA is. Even though there may not be a document in place, small organizations still go through the motions, but with no commitment to the business.
Smaller organizations experience the law of diminishing returns when it comes to SLA implementation. The amount of effort, time, and resources required doesn’t always justify the end result.
Larger organizations experience spare cycles more often, allowing them to devote more time to SLA development.  Particularly since larger organizations are typically not on the “wild roller-coaster ride of growth”, there is more time to devote to best-practices in any discipline (i.e. project management, ITIL, SLA).

10. Overall Service Level Management
Organizations that effectively manage service levels follow the prerequisite processes for an SLA without realizing it
Organizations, without an SLA, that established they did not need one were just as successful at managing service levels as those that had a formal SLA with the business.
However, these organizations used best practices of the SLA development and management process (i.e. monitoring and measuring metrics) in their department.
Organizations without an SLA, due to limited time or expertise, elicited lower service levels.
These organizations did not implement SLA development best practices in their department.
Understanding whether you need a formal SLA is important.
Whether or not IT implements a formal agreement with the business is not as critical as following the SLA development process to achieve better service levels and management.
Organizations that implemented an SLA were, on average, more effective in managing service levels and business alignment
Formalization and optimization of service level management leads to improved service levels, not a formal SLA document per se.
Very Effective
58%
59%
52%
Overall Service Level Management
Who should absolutely implement an Infrastructure SLA?
Most large businesses
Publicly traded organizations
Municipalities/Government Agencies
Organizations that have or are going to
implement a chargeback model in IT.
Very Ineffective
No SLA - No Time or No Expertise
No SLA - Do Not Need One
Have an SLA

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