WORKSHOP SLA SPECIFICATION

1. WORKSHOP SLA SPECIFICATION BY ETIENNEWERY 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. 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 DEFINITION OF THE SLA

6. 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? USE OF THE SLA

7. 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” PURPOSES OF USING AN SLA

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 Classicaloutsourcing 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. ASP CHAIN Customer ISV ASP …. VAR BO P IAP SI

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. ZONE OF INFLUENCE OF SLA Customer Zone of influence of SLA ISV ASP …. VAR BO P IAP SI

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) • Data Center • Server • Load balancing • Clustering • Geographic Redundancy Infrastructure • Network architecture • Scalability • Connectivity Options Connectivity • Authentication • Access Control • Integrity • Confidentiality • Non-repudiation • Security of Hardware • Security of Software Security

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

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

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) • Introduction and purpose • Service to be delivered • Uptime • System response time • Lost data • Customization • Change control • Billing responses • Report generation • Other issues

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

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

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

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