Joel Spolsky over at FogCreek is talking about SLAs.

I responded.

Stephen, I know you have something to say on this.

Anyone else?

1 thought on “SLAs

  1. Stephen Guth


    I couldn’t agree with your response more. As you point out, the problem is a lack of integrity. Promises are made in terms of service levels, knowing they’re going to be broken by the vendor–and the penalties are baked into the deal P&L as COGS. That’s why it’s important to use the escalations model. A customer can still combine liquidated damages with the escalations model if that’s what makes the customer feel safe, but the escalations model is what’s really going to drive the vendor to perform to SLAs.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s