Service Level Agreement Negotiation and Associated Methods
A method for minimizing risk of a service level agreement (SLA) is provided. Such a method can include creating a risk profile for a key performance indicator based on a collection of data, determining a service level objective (SLO) cost for a SLO by correlating the SLO with the risk profile, and computing a cost of a SLA by analyzing the SLO cost for the SLO associated with the SLA.
1 . A method for minimizing risk for a service level agreement, comprising:
creating a risk profile for a key performance indicator based on a collection of data;
determining a service level objective cost for a service level objective by correlating the service level objective with the risk profile; and
computing a cost of a service level agreement by analyzing the service level objective cost for the service level objective associated with the service level agreement.
2 . The method of claim 1 , further comprising creating the risk profile on a computing device and accessing the collection of data on a server over a network.
3 . The method of claim 1 , wherein the collection of data is historical data.
4 . The method of claim 1 , wherein the collection of data is estimated data.
5 . The method of claim 4 , wherein the estimated data is based on known data patterns.
6 . The method of claim 1 , wherein creating the risk profile for the key performance indicator further includes creating a plurality of risk profiles for at least one key performance indicator based on the collection of data.
7 . The method of claim 1 , wherein determining the service level objective cost for the service level objective further includes determining a plurality of service level objective costs for a plurality of service level objectives by correlating each of the service level objectives with an associated risk profile.
8 . The method of claim 1 , wherein computing the cost of a service level agreement further includes:
generating a plurality of service level objective costs for a plurality of service level objectives associated with a plurality of potential service level agreements; and
selecting the service level agreement from the plurality of potential service level agreements based on the plurality of service level objective costs.
9 . The method of claim 1 , wherein the risk profile includes a statistical probability of failure of the service level objective.
10 . The method of claim 1 , wherein the risk profile and the service level objective cost are created by a provider entity.
11 . The method of claim 1 , wherein computing the cost of the service level agreement is performed by a consumer entity.
12 . The method of claim 11 , wherein a plurality of service level objective costs is provided to the consumer entity for computing the cost of the service level agreement.
13 . A method for minimizing risk for a service level agreement, comprising:
accessing historical data on a server through a communication channel of a computational device;
creating at least one risk profile for at least one key performance indicator based on the historical data, wherein the at least one risk profiles is created using the computational device;
determining at least one service level objective for each of the at least one risk profiles;
determining at least one service level objective cost for each of the at least one service level objectives by correlating the at least one service level objective with the at least one risk profile, the at least one service level objective cost being determined using the computational device; and
computing a cost of a service level agreement by evaluating the at least one service level objective cost for the at least one service level objective associated with the service level agreement.
14 . The method of claim 13 , further comprising:
computing the cost of a plurality of service level agreements; and
selecting a preferred service level agreement based on the computed cost.
15 . The method of claim 13 , wherein the at least one risk profile includes a statistical probability of failure of the at least one service level objective.
16 . The method of claim 13 , wherein the at least one risk profile and the at least one service level objective cost are created by a provider entity.
17 . The method of claim 13 , wherein computing the cost of the service level agreement is performed by a consumer entity.
18 . The method of claim 17 , wherein a plurality of service level objective costs is provided to the consumer entity for computing the cost of the service level agreement.
19 . A system for minimizing risk for a service level agreement, comprising:
a computational device networked through a communication channel to a server containing historical data;
a software module resident on the computational device, the software module further comprising:
a data collection module operable to access and retrieve the historical data from the server;
a risk profile creation module operable to generate a risk profile from the historical data;
a service level objective cost determination module operable to determine a service level objective cost for a service level objective by correlating the service level objective with the risk profile; and
a service level agreement cost evaluation module operable to evaluate a service level agreement cost based on the service level objective cost.