IT organizations that manage multiple service providers may want to enter into operational level agreements (AEOs) to explain how certain parties involved in the IT service delivery process interact with each other in order to maintain their performance. Any important contract that is not subject to an associated SLA (reviewed by a lawyer) is open to intentional or accidental misinterpretations. The SLA protects both parties in the agreement. The service elements include the particularities of the services provided (and what is excluded if there is reason to doubt), the conditions of availability of the service, standards such as the window of opportunity for each level of service (for example, prime time and non-prime time may have different levels of service), the responsibilities of each party, escalation procedures and cost/service trade-offs. In general, service level agreements are often used to determine how two parties have agreed that a particular service (normally, but not necessarily IT) will be delivered by one party to another party, and the standards or levels at which the service is provided. Ideally, SLAs should be tailored to the technology or business goals of the engagement. Misthewriting can have a negative impact on agreement pricing, service quality, and customer experience. However, for critical services, customers should invest in third-party tools to automatically collect SLA performance data that provides an objective measure of performance. The underlying advantage of cloud computing is that of shared resources that are supported by the underlying nature of a common infrastructure environment. Therefore, SLAs span the entire cloud and are offered by service providers as a service agreement and not a customer-based agreement.
Measuring, monitoring, and reporting on cloud performance is based on the final UX or its ability to consume resources. The disadvantage of cloud computing compared to SLAs is the difficulty of determining the cause of service interruptions due to the complexity of the nature of the environment. Choose measures that motivate good behavior. The first objective of each metric is to motivate the appropriate behavior on behalf of the customer and the service provider. Each part of the relationship will strive to optimize its actions to achieve the performance goals set by the metrics. Focus first on the behavior you want to motivate. Then test your metrics by placing yourself on the other side instead. How would you optimize your performance? Does this optimization support the initially desired results? The SLA should include elements in two areas: services and management. Finally, the SLA must be agreed. They are not a weapon for one organization with which it can strike another, and therefore they are not the panacea against all the evils of existing bad services. These poor performance issues must be addressed and a clear future level must be agreed before an SLA can be designed and agreed.
Companies are increasingly relying on outsourcing to make strategic IT decisions, and the many sophisticated forms of outsourcing require considerable management attention to ensure their success.