TELNET

The Ideal SLA From A

Service Provider
Perspective
Telnet Presentation
TELNET
Introduction
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
Telnet Presentation
TELNET
Telnets Aims
Manage Expectations Of Both Parties
Service Provider & Institution

Avoids the major cause of disputes, the gap
between expectations & deliverables

Provides framework for high availability services

High Availability Is Possible!

Telnet Presentation
TELNET
Key Definitions
Service Level Agreement
Legally binding agreement
A Contract Between the SP & Bank

Services: Offered Under The Agreement
Key Performance Areas (KPA)
Key Performance Indicators (KPI)
Consequences: Over/Under Performance
Bonuses
Penalties

Telnet Presentation
TELNET
Critical Factors From An Institutional Perspective
Availability
Performance
Delivery
Problem Resolution (MTTR)
Performance Monitoring
History: Statistics
Costs
Penalties
Telnet Presentation
TELNET
From SPs Perspective
Clear Understanding Of The Institutions
Requirements

Resources: Equipment/Infrastructure/People

Penalties/rewards

Telnet Presentation
TELNET
Components Of An SLA
SLA
Parties
Term
Scope
Variations
Intellectual Property (IP)
Confidentiality
Force Majeure
Breach
Dispute Resolution
Costs
Penalties & Bonuses
Telnet Presentation
TELNET
Required Service Levels
Availability
Reliability
Serviceability (Mean Time To Repair)
Performance
Latency
Error Rate
Throughput
Loss

Telnet Presentation
TELNET
SLA Implementation Details
Delivering Services To Agreed Performance
Standards.

Method

Governance Arrangements
Service Level Agreements
Performance Standards.
Telnet Presentation
TELNET
Governance Arrangements
Build And Maintain Effective Relationships With the SP.

Clear Lines Of Authority, Responsibility & Decision
Making
Between You & The SP
Where & How Policies, Strategies, Functions & Actions
Are Addressed;
Meet The Needs Of Both Parties
Governance Council
Key Bank & SP Executive Management

SLA Details
Telnet Presentation
TELNET
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 & improvement
implementations; ad-hoc reviews of services; and
IT Manager, SP Account Team

Operational Interactions:
Service & performance reviews; service desk and day-to-day
service provision.
IT Operations Team, SP Support Organization
SLA Details
Telnet Presentation
TELNET
SLA 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 Have
Executive 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
Telnet Presentation
TELNET
Service 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

Telnet Presentation
TELNET
KPI
Activity Performance Objective KPI metric
Prompt payment of
SPs Invoices
Invoices are paid per agreed payment
terms with SP (NO DELAYS).
[100%] of invoices paid within
agreed terms.
Acceptable Service
Availability
Service is available for Banks Use.
[%] time performance of
service meets defined service
levels
Acceptable Service
Performance
Service provides acceptable
performance
Latency, error rate &
throughput as defined by
Bank/SP
Prompt Resolution
of Service Faults
Bank Is returned to service as quickly
as possible
MTTR Of x hours (4 preferred)
Note that there are current service challenges with existing
SLAs
SLA Details
Telnet Presentation
TELNET
SLA 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 Called
Automatically 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

Telnet Presentation
TELNET
Performance Bond
SP Provides Bond That Covers The Penalties For
Non Performance
SP Purchases Bond From Bank Or Insurance Company
Bond Protects The Bank From SP Service Failures
Easily Accommodated By Existing Order
Processes
Part Of The SP Internal Contract Deliverable
Process
Radios
Personnel
Cables
Performance Bond

SLA Details
Telnet Presentation
TELNET
Bonus Structure
Bonus Structure Designed To Reward Performance
Provides SP Incentive To Invest In Reliability
Availability Bonus
Greater than 99.9% 300%
99 99.9% 150%
98 98.99% 50%
SLA Details
Telnet Presentation
TELNET
Penalty Structure
Again Rewards SP For Exceptional Performance
Transforms The Economics Of Service Provision..
Penalizes Sloppy Engineering
Availability Penalty
Less than 95% 300%
95 95.9% 150%
96 97.99% 50%
SLA Details
Telnet Presentation
TELNET
Outcome

Services Delivered to agreed performance
standards



Service Performance
Telnet Presentation
TELNET
High Availability Services Are Possible.
Fix Your Existing SLAs
SLA Details