Business Internet – You’ve no doubt heard of Service Level Agreements (SLAs). These court-enforceable agreements define the service levels and standards that a Technology Solutions Provider (TSP) must provide to customers. If the service provider does not meet these benchmarks, the provider will be subject to penalties – such as service credits or prorated refunds – specified in the SLA. Today, more often than not, you’ll see SLAs in Internet Service Provider (ISP) contracts for dedicated Internet access around uptime (99.9% uptime), packet loss, or jitter.
When SLAs were widely used in the 1990s, vendors typically tailored them to individual customers. Now, with managed data services in the cloud, TSPs favor non-negotiable service contracts that “cover” all customers. However, enterprise-level customers often negotiate complex SLAs with suppliers that commit both parties to comply with specific requirements outlined in the agreement.
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Today’s non-negotiable SLAs reflect the collective nature of these contractual arrangements as opposed to the customized resource delivery often seen a generation ago. Since TSP guarantees a defined level of service, customers can compare service and quality metrics with other vendors’ SLAs. Customers then choose the service that best suits their needs.
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Depending on the service environment, TSPs may require a Master Service Agreement (MSA) that specifies the General Terms of Service (ToS) as well as the SLA. Although a service agreement specifies certain service levels and performance indicators, then:
At the risk of stating the obvious, never expect to receive a service contract when using a shared service or shared network.
Case in point: ISP customers sharing bandwidth over a DOCSIS connection receive service from a local node or hub that serves a community of subscribers – the way a cable network is typically structured. As a result, when broadband demand increases, subscribers may experience slower data speeds and increased latency. Since an ISP cannot predict exact usage or demand from residential subscribers, it cannot guarantee data speeds or latency over a shared DOCSIS connection.
In addition to DOCSIS, most wireless service options (satellite, WiFi, LTE/5G, WiMax), DSL, and shared fiber (AT&T Fiber, Verizon FiOS, Google Fiber) share network connections.
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The cheap “commercial network” offered by the “cable company” is actually a rebranded home internet service. Used by retail and other small businesses and as a backup choice by larger businesses, the commercial network is susceptible to the same data rate fluctuations, latency, jitter and packet loss found with residential DOCSIS access.
Also, residential / business DOCSIS services tend to be asymmetric, meaning that most of the available bandwidth is used to download data. This asymmetry can lead to performance issues with data backup, VoIP, and video conferencing applications that require high upload capacity.
Of course, carriers have been providing SLAs for multiplexed circuits like T1s for decades. Although highly reliable, the T1’s 1,544 Mbps bandwidth is not suitable for today’s data-heavy applications. Even T3 (44.736 Mbps) cannot adequately serve the multi-user network needs of most businesses.
Fortunately, organizations can choose from many dedicated Internet connections that provide SLA guarantees. Fixed wireless and DIA delivered over fiber all offer consistent quality of service (QoS) with high symmetrical data rates, scalability and very high reliability. ISPs typically guarantee 99.9% availability and priority support for this service; the industry standard for guaranteed mean time to repair for DIA services is 4 hours or less.
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Each option has different advantages and disadvantages. For example, fixed wireless QoS is considered lower than DIA on fiber. Although DIA copper costs less and the installation is faster than DIA fiber, distance affects the performance of copper (just like DSL). Copper is also susceptible to electrical interference. Therefore, the SLAs governing these options show these differences.
A Business Internet SLA addresses the TSP’s (or ISP’s) network performance and service level metrics to the customer. It also specifies the customer’s eligibility for a service credit or prorated refund if the TSP does not deliver a fixed performance standard as defined by the SLA. SLA objectives or key performance indicators (KPIs) are typically:
While many definitions are standard among TSPs, others may be specific to the company. The customer must understand the SLA terms to get the maximum benefit from the agreement. Also, some metrics (such as uptime) can be measured annually, while others (ie, incident response time) are measured quarterly. A comprehensive SLA should clearly identify the elements that are not covered by the contract. For example, in light of recent malware and data breaches, a TSP may disclaim liability by specifying that its SLA excludes liability for any cybersecurity incidents such as ransomware attacks affecting customers.
If the TSP breaches its obligations under its SLA, the contract should provide practical and enforceable remedies. The SLA should clearly state how service level credits are calculated, any credit limits, and customer termination rights in the event of persistent non-delivery.
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Typically, the SLA limits the customer’s remedies to service level credits and termination rights. In other words, the SLA mandates the customer to file a lawsuit against the service provider for breach of contract or damages caused by a service level failure. Remember, SLAs are legal contracts. You should strongly consider consulting an attorney before entering into any SLA offered by TSP if you are unfamiliar with the terms. Can you imagine a day without the internet? Most of us cannot imagine even a few hours without access to the Internet, let alone a day. The Internet is one of the greatest inventions of this century. This has helped change the lives of people all over the world. The internet gives us a lot of information, knowledge and entertainment.
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Using internet services for your business allows you to market and sell products, take orders and receive payments anytime and anywhere around the world. With the help of internet your business will earn good amount as profit.
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