Why Service Level Agreements trend towards BS.

bpc Work with a big enough organisation and you’ll come across the Service Level Agreement (SLA).

An SLA basically says, “we’ll provide you with x level of service, for y dollars.  If we don’t provide you with that service, we’ll give you something in return.”

That “something” might be a partial refund of your y dollars; or a credit towards a future service.

There was one customer organisation who demanded that they have an IT technician based at their head office.  But didn’t want to pay for the premium service.
Big IT Company did the calculations, and said

No, that’ll cost us $10,000 a month to place someone there.  And only $5,000 a month in missed SLA penalties if we don’t.  We’ll take the penalties, thank you.

My, didn’t THAT improve the relationship with the customer.

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