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8/12/2019 The Ideal SLA From a Service Provider Perspective v2
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T LN T
The Ideal SLA From AService Provider
Perspective
8/12/2019 The Ideal SLA From a Service Provider Perspective v2
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Telnet Presentation
T LN TIntroduction
Details The Components Of An Ideal SLA That
Enables Zero Downtime In The Nigerian Environment
Incorporates Lessons Learned From Telnets Position
On Both Sides Of The Table
As Service Provider (SP)
As Service Consumer
Attempts To Meet Both Parties Requirements
SPs Desire For Prompt Payment SCs Desire For Service With Zero Downtime
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T LN TTelnets Aims
Manage Expectations Of Both Parties
Service Provider & Institution
Avoids the major cause of disputes, the gapbetween expectations & deliverables
Provides framework for high availability services
High Availability Is Possible!
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T LN TKey Definitions
Service Level AgreementLegally binding agreement
A Contract Between the SP & Bank
Services: Offered Under The AgreementKey Performance Areas (KPA)
Key Performance Indicators (KPI)
Consequences: Over/Under PerformanceBonuses
Penalties
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T LN TCritical Factors From An Institutional Perspective
AvailabilityPerformance
Delivery
Problem Resolution (MTTR)Performance Monitoring
History: Statistics
Costs
Penalties
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T LN TFrom SPs Perspective
Clear Understanding Of The Institutions
Requirements
Resources: Equipment/Infrastructure/People
Penalties/rewards
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T LN TComponents Of An SLA
SLA
Parties
Term
Scope
Variat ions
Intellect ual Pro perty (IP)
Conf ident ial i ty
Force Majeure
Breach
Dispute Resolut ion
Costs
Penalt ies & Bonus es
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T LN TRequired Service Levels
Availability
Reliability
Serviceability (Mean Time To Repair)
Performance
Latency
Error Rate
Throughput
Loss
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T LN TSLA Implementation Details
Delivering Services To Agreed Performance
Standards.
Method
Governance Arrangements
Service Level Agreements
Performance Standards.
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T LN T
Governance Arrangements
Build And Maintain Effective Relationships With the SP.
Clear Lines Of Authority, Responsibility & Decision
MakingBetween You & The SP
Where & How Policies, Strategies, Functions & Actions
Are Addressed;
Meet The Needs Of Both PartiesGovernance Council
Key Bank & SP Executive Management
SLA Details
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Governance at 3 levels
Strategic Governance:Overall ownership of the service, performance & the SLAs;approves changes, improvements & charges;
CIO & Head IT, Bank ED, SPs Executive Management
Tactical Interactions:Negotiates & manages SLAs & KPIs; change & improvementimplementations; ad-hoc reviews of services; and
IT Manager, SP Account Team
Operational Interactions:Service & performance reviews; service desk and day-to-dayservice provision.
IT Operations Team, SP Support Organization
SLA Details
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T LN TSLA Details
SLA Governance Council
Consists of C-level Executives From Both Organizations
Directly Responsible For Service Provision (the Service
Provider) & Consumption
Resolves Issues And Ensures That Problems HaveExecutive Level Visibility
Downtime Becomes Career Limiting
You Can Roll Out Transformational Services That Treat The
Network As An Always Available Utility
Provides Decision & Accountability Framework Needed To
Encourage Appropriate Behaviors
Provide Required Context For Successful Zero Downtime
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T LN TService Performance
Performance Standards
Performance of the key activities that must be achieved if
we are to meet our business objectives in our bank
Method
KPIs are essential to ensure you meet your business
objectives
KPIs will be continually monitored
Performance targets for both SP & The Bank
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KPI
Activity Performance Objective KPI metricPrompt payment of
SPs Invoices Invoices are paid per agreed paymentterms with SP (NO DELAYS). [100%] of invoices paid withinagreed terms.Acceptable Service
Availability Service is available for Banks Use.
[%] time performance of
service meets defined service
levelsAcceptable Service
Performance Service provides acceptableperformanceLatency, error rate &
throughput as defined by
Bank/SPPrompt Resolution
of Service Faults Bank Is returned to service as quicklyas possible MTTR Of x hours (4 preferred)
Note that there are current service challenges with existing
SLAs
SLA Details
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T LN TSLA Details
Bonuses & Penalties
Pay The SP A Bonus For Exceeding Targets
The SP Will Provide The Bank With A Performance
Bond Covering SPs Services
Performance Bond Will Be Invoked Or CalledAutomatically When Performance Is Below
Minimums
Provides real Financial Penalty..
Service Credits Are Notional And Do Not Provide Any
Benefit To The Bank Or Sanction For SP
Have Not Worked In The Nigerian Environment
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Performance BondSP Provides Bond That Covers The Penalties For
Non PerformanceSP Purchases Bond From Bank Or Insurance Company
Bond Protects The Bank From SP Service Failures
Easily Accommodated By Existing OrderProcesses
Part Of The SP Internal Contract DeliverableProcessRadios
Personnel
Cables
Performance Bond
SLA Details
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Bonus Structure
Bonus Structure Designed To Reward Performance
Provides SP Incentive To Invest In Reliability
Availability BonusGreater than 99.9% 300%
9999.9% 150%
9898.99% 50%
SLA Details
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Penalty Structure
Again Rewards SP For Exceptional Performance
Transforms The Economics Of Service Provision..
Penalizes Sloppy Engineering
Availability Penalty
Less than 95% 300%
9595.9% 150%
9697.99% 50%
SLA Details
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Outcome
Services Delivered to agreed performance
standards
Service Performance
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High Availability Services Are Possible.
Fix Your Existing SLAs
SLA Details
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