Why SLOs (Service Level Objectives) Are More Reliable Than SLAs in NOC Performance

In Network Operations Centers (NOCS), performance management is a mission-critical task in regards to continuous service availability. “SLAs are the traditional approach to setting and measuring expectations between service providers and their customers. But as NOCs grow and get more complex, SLOs are becoming a more reliable and flexible tool for quantifying performance and servicing customer needs.

We explain in this article why reviewing SLOs has proved to be an increasingly effective way of overriding evaluation methods for NOC performance, and can provide a more definitive route to success, continuous improvement, and closer alignment with client needs. We’ll walk you through the key distinctions between SLAs and SLOs, and why SLOs are a better fit for the ever-evolving ways of modern NOCs.

What Are SLAs and How Are They Used in NOCs?

A Service Level Agreement (SLA) is a contract between service provider and customer that specifies what services the provider will supply. It usually contains quantifiable measures such as:

Response time: Time of the NOC team to respond to an incident or request.

Resolution time: The duration to resolve an issue or restore service.

Uptime guarantees: The amount of the time period (e.g., 99.9%).

In typical NOC environments, SLAs have served to measure performance and ensure team accountability. They create clear lines around what a client expects, and when you don’t meet that expectation, there’s penalties, or you get in the doghouse.

And while the CKIs especially can help to set a baseline, they cause huge problems when it comes to working in complex, dynamic environments such as those you find on many technologies underpinning modern IT systems. They are often not flexible enough and do not correspond to the actual performance that is relevant for both service provider and client.

What Are SLOs and How Do They Compare to SLAs?

SLOs allow for more dynamic and data-driven target setting. Whereas an SLA is about the formal commitments and penalties, an SLO deals with performance as measured by what’s important to your customers and business. A more general SLO typically might include:

Error rates: The proportion of requests that failed, or the service was unavailable.

Availability: The proportion of time the system is available and operates as specified.

Latency: Requests have to be processed and incidents responded to.

With SLOs, orgs can establish performance goals without the legally binding constraints of SLAs. While SLAs are considered contracts, SLOs are generally seen as targets to aim for instead of binding commitments with legal repercussions. This puts them in a better place to keep getting better and reacting faster to new requirements.

SLOs vs SLAs for NOC Performance: Explained

SLOs have a number of advantages over the more traditional SLAs, particularly as NOCs change and work in ever-more challenging environments.

Flexibility and Continuous Improvement

Whereas SLAs are static and can sometimes be rigid to modify without new contract negotiations, SLOs provide flexibility. They can scale as the organization or client scales. This means they are perfect for a real-time NOC scenario, where network changes, infrastructure or client requirements may mean changes to performance targets.

NOCs can continue to drive towards ever improved performance targets and evolve their aspirations to the challenges of new competition or emerging business needs. This versatility is particularly crucial when the IT environment around us changes so quickly.

Aligning with Business Goals

More often than not though, SLAs are a result of contractual rather than business obligation, which means they may not always capture what is truly significant to the customer. By comparison, SLOs normally support the business goals and results that are important for both Service Provider and Client.

For instance, a customer in the finance sector might be more concerned with availability and latency as to guarantee business continuity for its users, whereas a media client could instead focus on data throughput and error rates for optimal user experience. By using SLO monitoring, NOCs can also create performance goals that are specifically aligned to the business objectives of the individual customer they serve.

Better Transparency and Accountability

SLOs give better visibility into how the NOC is doing compared to what was expected. Because SLOs are quantifiable and centered around well-defined performance metrics, NOCs can easily monitor their performance to date and demonstrate to clients how SLO objectives are being delivered.

This expanded level of visibility also makes it possible for NOCs to spot potential problems before the client ever notices, giving them an opportunity to make proactive changes. If, for instance, latency is consistently greater than the target SLO, the NOC can analyze what has caused it to resolve that issue before a major incident can occur.

Reducing the Pressure of Penalties

Whereas SLAs frequently include penalties for missing performance targets, SLOs lack this sense of high-wire threat. Rather than simply thinking about penalties for missing a target, SLOs provide an opportunity to collectively problem-solve what’s going wrong between the NOC and the client.

If an SLO fails, the focus is on investigating why you didn’t meet it and what actions can improve reliability. This moves the conversation away from a negative and adversarial interaction towards a more positive relationship where we are two partners working together to address problems and make service better.

Focus on Client-Centric Metrics

Typically, SLAs are based on high-level, one-size-fits-all metrics like response time or resolution time that does not necessarily match the value the client gets out of the service. SLOs, however, permit more tailored metrics based on client needs. This customer-based approach ensures that the NOC is working where it counts.

For example, a health client could place more value off-hours response times because of the urgency nature of their services while a retail could prioritize uptime during peak traffic (like black Friday). SLOs give your NOC flexibility in terms of matching performance objectives to whatever is important for the client, rather than being locked into a predefined set of guidelines.

Implementing SLOs in NOC Operations

You’re not alone, and there are ways to run SLOs effectively in a NOC: Best practices for running Slo’s in an NOC To make sure that you integrate Slo’s and Sre best practices at the NOC, these are some of the measures you can take.

Define Clear, Achievable Objectives

Define distinct and measurable SLOs for each client according to their business characterization. Work with your customers to understand the metrics they care about most (that might be availability, latency, error rates or something else), and set performance targets based on those criteria.

Use Data-Driven Insights

Utilize monitoring and analytical tools which are capable of providing real-time performance data points across your NOC. Employ this information to establish pragmatic and attainable SLOs, then monitor progress toward meeting those targets. Using tools like Datadog, SolarWinds and Nagios can help you monitor important metrics and stay on top of whether your system is meeting your SLOs.

Develop a Climate of Continuous Improvement

SLOs should be managed as living goals that change throughout their lifetime. Instead, use them as a basis for ongoing improvement —seek feedback from your team and customers, and modify your SLOs process as the needs of the business or new challenges arise.

Establish Clear Communication with Clients

Educate clients on what separates SLAs from SLOs, and why a team-based, goal-focused attitude is most effective. Offer periodic updates to clients about how you’re tracking against established SLOs, and keep them assured that the goals are being achieved.

Conclusion:

SLAs have, of course, been the basis for service expectation for years but SLOs provide a more nuanced and customer-centric method to measuring NOC performance. With an emphasis on reliable, actionable metrics that map to business goals and incentivize continuous improvement, SLOs offer a better way to manage NOC performance — which means better outcomes for the customers.

SLOs allow NOCs to operate a more fluid, and agile service model that’s more in tune with the changing needs of customers, is far better at building relationships, and ensuring that performance goals are always tethered as closely as possible to what counts most for the business. This shift from the prescriptive SLAs to SLO-driven success is what’s enabling NOCs to face new challenges and establish strong client relationships for the long term.