Service Level Agreement in Cloud

 

Let’s begin this post with a brief introduction to cloud computing before we discuss SLA, as cloud computing is still a new technology to many organizations out there. So when was this implemented? Per the referenced article, the notion of network-based computing dates to the 1960s, but many believe the first use of “cloud computing” in its modern context occurred on August 9, 2006, when then Google CEO Eric Schmidt introduced the term to an industry conference (Regalado, A. 2020, February 11).

Cloud computing application allows people to access the same type of applications thru the internet like running on a physical computer or server. There are many benefits of using applications in the cloud vs using in local machine or server. Here are few examples;

  • Improved Security Measures
  • Enhanced Speed and Reliability
  • Storage Capabilities and Ease to Scale
  • Highly Customizable

Now let’s discuss SLA in cloud computing. Service Level Agreement or SLA is basically a contract between customer and service provider which outlines the service for the customer to expect. SLA’s started with network service providers but now cloud computing and telecommunication providers also use them. This agreement helps to make sure that customer is getting expected service performance and quality as expected. Most of the time service providers have their standard SLA template which includes everything so they don’t have to go thru in every contact and some service providers like to customize as per consumer’s need.  (Rosencrance, L., Louissaint, S., & Brush, K. 2021, January 12)

Here is a picture below showing how SLA stays between service provider and customer:-









There are many ways to measure the same, here the same below: -

  • Cost of Service – It’s very important for a business to maintain their budget and only paying what they are supposed to. As per the agreement, the cost should be exactly what was discussed in the contract and shouldn’t change the entire time unless demand changes.
  • Duration of the agreement – Services providers should provide all agreed services till the duration of agreement without any interruption. An agreement may include some downtime in service but they should include details on how they will compensate the customer in any event of contact breach.
  • Responsibilities of the customer and the service provider – The agreement should include every responsibility of the customer and service provider. For example, how the payment will be done and the action customer needs to take in order to extend the service.
  • Service monitoring and reporting – During the contract it’s important for the service to be monitored so the customer can expect their complete service and if something isn’t right, then the customer should inform the service provider to resolve the issue.
  • A breakdown of service provided and excluded – The agreement should be very clear and broken down for each and every service, to avoid customer confusion.
  • A mechanism for reviewing and updating the SLA, including a change control process- Communications involving changes to services will follow the SLA change control policy and will be communicated with clients. There needs to be a system in place for reviewing and making necessary changes to the SLA.
  • Dispute resolution procedures – It is possible a customer may not be satisfied with the service provided, so the Service Level Agreement should include details on dispute and resolution procedures. It can save the time of both the consumer and service provider if the procedure is clear and already written in an agreement. It will allow both parties to be on the same page.
  • Availability and performance requirement – Customer/client should expect their service as per the agreement. The SLA should mention the requirements of service which will help a service provider understand customer’s requirements and put their full efforts to complete the request.
  • Remediation and liability (or lack thereof) for service disruption- Whether it be insurance of some type there needs to be corrective action in place. In case of a service disruption there needs to be a process in place to remedy the situation. This along with all of the above should be included in the SLA and updated when necessary.

  • Resources:-

    Regalado, A. (2020, February 11). Who Coined 'Cloud Computing'? MIT Technology Review. https://www.technologyreview.com/2011/10/31/257406/who-coined-cloud-computing/#:%7E:text=The%20notion%20of%20network%2Dbased,term%20to%20an%20industry%20conference.

    Rosencrance, L., Louissaint, S., & Brush, K. (2021, January 12). service-level agreement (SLA). SearchITChannel. https://searchitchannel.techtarget.com/definition/service-level-agreement

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