Once the domain of telecom titans, service-level agreements are transforming IT operations in all sorts of industries. Companies realize that defining an end-to-end, customer-focused IT department is crucial to providing measurable, usage-based service. Still, many IT managers don’t know where to start when it comes to defining and managing SLAs. Let’s unravel some of the mystery.

SLAs define a level of service that’s promised to a customer. They might also define cost, usage levels, or other helpful data points that allow both the provider and the user to understand the level of overall service offered and received.

The first step with SLAs is defining the service. What are you offering: Network capability? Apps? IT services? Store the definitions in a service catalog that’s accessible to your customers. This catalog can be as simple as a Word document or you can go high tech: Software vendors Digital Fuel, NewScale, and others offer service catalogs that let customers order IT services like they’d order a book from Amazon.

Next, define the expectations of the user community with service-level requirements, which balance customer desires with operational reality. Your customer may want 100% availability, but IT must be honest about what it can and can’t deliver. It’s also critical to define, prioritize, and track the progress of each aspect of the SLA and to monitor SLA operational-level requirements for suppliers, such as network, hardware, and application vendors.

The last step is reporting. Tools from vendors including Integrien and OpTier focus on end-to-end reporting via integration of existing data sources.

A solid SLA strategy encompasses not only the technical aspects of the infrastructure, but also the operational processes involved in delivering service, such as change, configuration, incident, release, and problem management. Organizations must roll out processes in concert with the SLA to be successful.
An SLA strategy also hinges on an understanding of your business culture, operational structure, and the roles and responsibilities of key stakeholders.