Network Communications News (NCN) July 2016 | Page 15
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Jon Arnold of Volta Data Centre insists it is time for companies to look beyond vanilla Service Level
Agreements (SLAs) and standard service credits and demand that data centres back up their resilience and
availability promises with SLAs that really make a difference.
M
ost data centres promise
100 per cent availability
and 100 per cent resilience.
But what happens when
an outage occurs? Under
the typical Service Level
Agreement (SLA), the
standard service credit of five per
cent of the monthly fee kicks in –
rising as the outage continues, until
typically reaching the 30 per cent cap.
Given the complete standardisation
across the data centre market, it is
little wonder that just a fraction of
companies look to negotiate the
SLA and, if possible, push for a small
percentage service credit increase.
But is this really good enough for
any business? When even a 10 second
outage can have significant financial
and reputation ramifications, especially
for a cloud or infrastructure provider,
just what is the value of a five per cent
monthly rebate?
Changing the SLA
smallprint is set to increase
choice across the data
centre market .
The problem is that companies
have had little leeway for negotiation in
a market that has got away with vanilla
SLAs for too long. Why are data centre
providers not delivering SLAs that
match their much vaunted investment in
resilience and availability? Is it because,
perhaps, when you look beyond the
headline promises, that resilience
actually looks a little more fragile than
at first glance?
There are, of course, degrees of
resilience and availability. While one data
centre can boast failover generators
should the main electricity grid fail;
another can offer two separate power
lines from two separate grid supplies –
ensuring uninterrupted service even if
part of London experiences blackout –
as well as batteries and generators.
While one can cite 11kV power
connections; another can point to two
resilient power connections from two
main grid stations and its own 33kV
transformers on site – it is all a matter of
scale. Similarly, while some data centres
are reliant on traditional and inefficient
computer room air conditioning
(CRAC) and low density racks; others
can boast high density racks and row
based cooling, delivering a completely
different quality of experience.
Given this divergence in actual data
centre resilience and quality, isn’t it time
the market reflected this difference in the
SLA and terms and conditions? Wouldn’t
that be a clearer way for organisations
to determine the value of different data
centre providers? It is not just data
centre differences – all companies have
different requirements. How much more
consequential loss would a cloud provider
incur with systems outage that may affect
tens or hundreds of customers, or a city
firm’s trading desk, when compared to
a business colocating a number of noncritical operational systems?
When data centre customers have
such different requirements, and the
implication of outage will have such
varied results, is the standard, inflexible,
service credit based SLA still relevant?
It is time to shake up the data centre
market. One radically different approach
to traditional, inflexible contracts is
the evolution towards hourly charging.
A pay-as-you-go service means
businesses are charged on an hourly
basis for the amount of power used, with
itemised billing to enable companies
to accurately monitor their power
consumption by the hour.
Another new model is to provide
organisations with a choice of SLA – the
standard SLA offering the traditional
service credits and a top level SLA
providing one year of free service
credit if 100 per cent power availability
is lost to a rack. For companies in the
finance and legal markets requiring the
guarantee of 100 per cent uptime, this
top level SLA option is compelling.
The reality is that despite the
ubiquitous model, not all data centres
are the same and not all companies have
the same data centre requirements. A
vanilla SLA across this market makes no
sense – and the fact that just 10 per cent
of companies look to negotiate that SLA
simply reflects the frustration many feel
about the lack of choice.
If a data centre really is carrier
neutral and totally confident of its power
resilience, the SLA could and should
reflect that fact. Those data centres
without such confidence will have to
remain with the standard, five per cent
monthly service credit model. The result
will be a far more transparent offer for
the customer base.
The cloud has transformed the way
businesses operate and data centres
are recognising the need to become
more competitive, to make changes
to service offerings and create clearer
market differentiation. Changing the SLA
smallprint is set to increase choice across
the data centre market – and will ensure
companies finally match resilience and
availability promises to business reality.
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