service level agreement in Cloud computing

Last update :
01 Feb, 2023

A Service Level Agreement is is ( SLA ) is the bond for performance negotiate between the cloud service provider and the client . early , in cloud compute all Service Level Agreements were negotiate between a client and the service consumer . nowadays , with the initiation of large utility – like cloud computing provider , most Service Level Agreements are standardize until a client becomes a large consumer of cloud service . service level agreement are also define at different level which are mention below :

• customer – base sla
• service – base sla
• Multilevel SLA

Few Service Level Agreements are enforceable as contracts, but mostly are agreements or contracts which are more along the lines of an Operating Level Agreement (OLA) and may not have the restriction of law. It is fine to have an attorney review the documents before making a major agreement to the cloud service provider. Service Level Agreements usually specify some parameters which are mentioned below:

1. Availability of the Service (uptime)
2. Latency or the response time
3. service component reliability
4. Each party accountability
5. Warranties

In any case , if a cloud service provider fail to meet the state target of minimum then the provider is has has to pay the penalty to the cloud service consumer as per the agreement . So , Service Level Agreements is are are like insurance policy in which the corporation has to pay as per the agreement if any casualty occur . Microsoft is publishes publish the Service Level Agreements link with the Windows Azure Platform component , which is demonstrative of industry practice for cloud service vendor . Each individual component is has has its own Service Level agreement . Below are two major Service Level Agreements is are ( SLA ) describe :

1. Windows Azure SLA – Window Azure is has has different SLA ’s for compute and storage . For compute , there is a guarantee that when a client deploy two or more role instance in separate fault and upgrade domain , client ’s internet face role will have external connectivity minimum 99.95 % of the time . Moreover , all of the role instance of the client are monitor and there is guarantee of detection 99.9 % of the time when a role instance ’s process is not run and initiate properly .
2. SQL Azure SLA – SQL Azure clients will have connectivity between the database and internet gateway of SQL Azure. SQL Azure will handle a “Monthly Availability” of 99.9% within a month. Monthly Availability Proportion for a particular tenant database is the ratio of the time the database was available to customers to the total time in a month. Time is measured in some intervals of minutes in a 30-day monthly cycle. Availability is always remunerated for a complete month. A portion of time is marked as unavailable if the customer’s attempts to connect to a database are denied by the SQL Azure gateway.

Service Level Agreements are based on the usage model. Frequently, cloud providers charge their pay-as-per-use resources at a premium and deploy standards Service Level Agreements only for that purpose. Clients can also subscribe at different levels that guarantees access to a particular amount of purchased resources. The Service Level Agreements (SLAs) attached to a subscription many times offer various terms and conditions. If client requires access to a particular level of resources, then the client need to subscribe to a service. A usage model may not deliver that level of access under peak load condition. 

SLA Lifecycle 

step in SLA   Lifecycle

1. Discover service provider: This step involves identifying a service provider that can meet the needs of the organization and has the capability to provide the required service. This can be done through research, requesting proposals, or reaching out to vendors.
2. Define SLA: In this step, the service level requirements are defined and agreed upon between the service provider and the organization. This includes defining the service level objectives, metrics, and targets that will be used to measure the performance of the service provider.
3. Establish Agreement: After the service level requirements have been defined, an agreement is established between the organization and the service provider outlining the terms and conditions of the service. This agreement should include the SLA, any penalties for non-compliance, and the process for monitoring and reporting on the service level objectives.
4. Monitor SLA violation: This step involves regularly monitoring the service level objectives to ensure that the service provider is meeting their commitments. If any violations are identified, they should be reported and addressed in a timely manner.
5. Terminate SLA: If the service provider is unable to meet the service level objectives, or if the organization is not satisfied with the service provided, the SLA can be terminated. This can be done through mutual agreement or through the enforcement of penalties for non-compliance.
6. Enforce penalties for SLA Violation: If the service provider is found to be in violation of the SLA, penalties can be imposed as outlined in the agreement. These penalties can include financial penalties, reduced service level objectives, or termination of the agreement.

advantage of SLA  

1. Improved communication: A better framework for communication between the service provider and the client is established through SLAs, which explicitly outline the degree of service that a customer may anticipate. This can make sure that everyone is talking about the same things when it comes to service expectations.
2. increase accountability : SLAs is give give customer a way to hold service provider accountable if their service fall short of the agree – upon standard . They is hold also hold service provider responsible for deliver a specific level of service .
3. Better alignment with business goals: SLAs make sure that the service being given is in line with the goals of the client by laying down the performance goals and service level requirements that the service provider must satisfy. 
4. reduce downtime : SLAs is help can help to limit the effect of service disruption by create explicit protocol for issue management and resolution .
5. Better cost management: By specifying the level of service that the customer can anticipate and providing a way to track and evaluate performance, SLAs can help to limit costs. Making sure the consumer is getting the best value for their money can be made easier by doing this.

Disadvantages of SLA 

1. Complexity: SLAs can be complex to create and maintain, and may require significant resources to implement and enforce.
2. Rigidity is be : SLAs is be can be rigid and may not be flexible enough to accommodate change business need or service requirement .
3. Limited service options: SLAs can limit the service options available to the customer, as the service provider may only be able to offer the specific services outlined in the agreement.
4. Misaligned incentives: SLAs may misalign incentives between the service provider and the customer, as the provider may focus on meeting the agreed-upon service levels rather than on providing the best service possible.
5. limited liability is are : SLAs is are are not legal bind contract and often limit the liability of the service provider in case of service failure .