1. WORKSHOP SLA SPECIFICATION BY ETIENNE WERY Lawyer at the Paris & Brussels Bar, Partner ULYS IT OUTSOURCING SUMMIT 27/11/2003

2. OVERVIEW OF WORKSHOP General theory about the SLA Duration 1/2hour SLA workshop Duration 1hour Workshop discussion and correction Duration 1/2hour Questions Duration 1/2 hour

3. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

4. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

5. DEFINITION OF THE SLA Service Level Agreements (SLA) are: An SLA is a legal contract that specifies the contractuable deliverables, terms and conditions between the service provider and the end-user The SLA is a formal, legally binding, statement of expectations and obligations between a service provider and its customer or customers

6. USE OF THE SLA AN SLA is used in outsourcing contracts An SLA answers to the following questions: Who delivers which service when? What happens if problems arise? What is the service and how is the service quality assessed? How to work changes into the SLA?

7. PURPOSES OF USING AN SLA Identifies and defines customer’s needs Provides a framework for understanding Simplifies complex issues Reduces areas of conflict Encourages dialog in the event of disputes Eliminates unrealistic expectations Plays as a marketing instrument Plays as a partnership instrument Transforms a “best effort obligation” into an “obligation of result”

8. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

9. An ASP is a company that delivers and manages applications and computer services to subscribers/clients via the Internet or a private network DEFINITION OF AN ASP Classical outsourcing ASP

10. ASP vs. CLASSICAL OUTSOURCING Transfer of personnel Higher level of maintenance Supplies mostly “standard applications” Hardware belongs to/hired by the ASP Hardware located at ASP

11. Customer ASPISV VAR IAPSI BO P …. ASP CHAIN

12. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

13. Customer ASPISV VAR IAPSI BO P …. ZONE OF INFLUENCE OF SLA Zone of influence of SLA

14. NETWORK SLA HOSTING SLA APPLICATION SLA SUPPORT SERVICE SLA SLA DOMAINS

15. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

16. ASPIC BEST PRACTICES Application service providers consortium (ASPIC) and World Intellectual Property Organization (WIPO) set up best practices: To build up good relationship between ISP and customer To avoid conflicts

17. ASPIC BEST PRACTICES (I/III) Infrastructure Data Center Server Load balancing Clustering Geographic Redundancy Connectivity Network architecture Scalability Connectivity Options Security Authentication Access Control Integrity Confidentiality Non-repudiation Security of Hardware Security of Software

18. ASPIC BEST PRACTICES (II/III) Application Application management Intellectual Rights Property Databases Pricing Application Preparation Sharing of liabilities Sharing of tasks Maintenance of the Application Maintenance Maintenance of the application Maintenance of the system Maintenance of the Network Reports Help-Desk

19. ASPIC BEST PRACTICES (III/III) Implementation Choice of application Preparation of the Platform Installation Configuration and Customisation Conversion / migration of data Reports Tests Integration Training of the customer

20. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

21. Main subjects to cover (I/III) 1. Introduction and purpose 2. Service to be delivered a) Uptime b) System response time c) Lost data d) Customization e) Change control f) Billing responses g) Report generation h) Other issues

22. Main subjects to cover (II/III) 3. Performance, tracking and reporting 4. Problem management 5. Fees and expenses 6. Customer duties and responsibilities 7. Warranties and remedies 8. Security

23. Main subjects to cover (III/III) 9. IPR and confidential information 10. Legal compliance and resolution of disputes 11. Termination 12. Examination of clauses- descriptions

24. SERVICE LEVELS Target level Minimum acceptable level Unacceptable level Bonus price Negotiated price Price reduction Contract termination Service level

25. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

26. MAJOR SLA FAILURES Negotiation problems Specification of efforts versus specification of results Unclear service specification Incomplete service specification Incomplete cost management « Dead-end » SLA documents Exit Management

27. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

28. WORKSHOP (I/II) Aim of the workshop Identify major problems when writing an SLA On service provided On service levels based on the organisation’s specificity Costs How to handle major issues

29. WORKSHOP (II/II) Workshop process Divide audience in 3 groups, each group represents a major SLA party Customer Service provider Parallel service provider Each group will react towards different given clauses Analyse clauses and try to find major issues about the SLA

30. CLASSIFY MAJOR ISSUES SLA failures Negotiation problems Efforts vs. Results Unclear service specification Incomplete service specification Incomplete cost management “Dead-end” SLA Exit Management

31. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

32. LESSONS LEARNED Does your SLA include: A specified level of customer support? Provisions for system and data security? A guaranteed level of system performance such as sub-second response time? Continuous system availability? In case of failure to deliver, is there a designated contact person who can address the issue? Enforcement procedure? Refund? Termination and choice of new ASP without penalty?

33. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

34. SLA SPECIFICATION: CHALLENGES Scope and Methodology Pre-understanding Service level management & service process management Knowing the actors and following a structured approach

35. TABLE OF CONTENT General concepts about the SLA General concepts about the ASP The SLA inside an ASP Writing of an SLA ASPIC best practices Main subjects to cover SLA failures Workshop Lessons learned SLA specification : Challenges Questions

36. QUESTIONS I would be pleased to answer your questions