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The Twists and Turns Of Licensing Agreements The Strategic Licensing Agreements With Outside Vendors

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The Strategic Licensing Agreements With Outside Vendors

A service-level agreement SLA is a contract between a service provider and its customers that documents what services the provider will furnish and defines the service standards the provider is obligated to meet. The two differ because an SLA is bidirectional and involves two teams.

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In contrast, an SLC is a single-directional obligation that establishes what a team can guarantee its customers at any given time. Service providers need SLAs to help them manage customer expectations and define the severity levels and circumstances under which they are not liable for outages or performance issues.

Customers can also benefit from SLAs because the contract describes the performance characteristics of the service -- which can be compared with other vendors' SLAs -- and Licenzing forth the means for redressing service issues. The SLA is typically one of two foundational agreements that service providers have with their customers. Many service providers establish a master service agreement to establish the general terms and conditions in which they will work with customers.

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The SLA is often incorporated by reference in the service provider's master service agreement. Between the two service contracts, the SLA adds greater specificity regarding the services provided and the metrics that will be used to measure their performance.

The Strategic Licensing Agreements With Outside Vendors

When IT outsourcing emerged in the late s, SLAs evolved as a mechanism to govern such relationships. Service-level agreements set the expectations for a service provider's performance and established penalties for missing the targets and, in some cases, bonuses for exceeding them.

Since outsourcing projects were frequently customized for a particular customer, outsourcing SLAs were often drafted to govern a specific project.

The Strategic Licensing Agreements With Outside Vendors

As managed services and cloud computing services become more prevalent, SLAs evolve to address the new approaches. Shared services, rather than customized resources, characterize the newer contracting methods, so service-level commitments are frequently used to produce broad agreements that are intended to cover all of a service go here customers. SLAs are thought to have originated with network service providers but are now widely used in a range of IT-related fields. Some examples of industries that establish SLAs include IT service providers and managed service providersas well as cloud computing and internet service providers.

Corporate IT organizations, particularly those who have embraced IT service managemententer SLAs with their in-house customers -- users in other departments within the enterprise. An IT department creates an SLA so that its services can be measured, justified and perhaps compared with those of outsourcing vendors. In broad terms, an SLA will typically include a statement of objectives, a list of the services to be covered by the agreement The Strategic Licensing Agreements With Outside Vendors a definition of the responsibilities of the service provider and customer under the SLA. The customer, for example, will be responsible for making a representative available to resolve issues with the service provider in connection with the SLA.

The service provider will be responsible for meeting the level of service as defined by the SLA. The service provider's performance is judged according to a The Strategic Licensing Agreements With Outside Vendors of metrics. Response time and resolution time are among the key metrics included in an SLAsince they relate to how the service provider deals with a service interruption. Agreement overview -- This first section sets forth the basics of the agreement, including the parties involved, the start date and a general introduction of the services provided. Description of services -- The SLA needs detailed descriptions of every service offered, under all possible circumstances, with the turnaround times included.

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Service definitions should include how the services are delivered, whether maintenance service is offered, what the hours of operation are, where dependencies exist, an outline of the processes and a list of all technology and applications used. Exclusions -- Specific services that are not offered should also be clearly defined to avoid confusion and eliminate room for assumptions from other parties. Service performance -- Performance measurement metrics and performance levels are defined. The client and service provider should agree on a list of all the metrics The Strategic Licensing Agreements With Outside Vendors will use to measure the service levels of the provider.

Redressing -- Compensation or payment should be defined in the event that a provider cannot properly fulfill their SLA. Stakeholders -- Clearly defines the parties involved in the agreement and establishes their responsibilities. Security -- All security measures that will be taken by the service provider are defined.

Typically, this includes the drafting and consensus on antipoaching, IT security and nondisclosure agreements.

The Strategic Licensing Agreements With Outside Vendors

Risk management and disaster recovery -- Risk management processes and a disaster recovery plan are established and clearly communicated. Service tracking and reporting -- This section defines the reporting structure, tracking intervals and stakeholders involved in the agreement. This process is defined as well as the here process for making changes. Termination process -- The SLA should define the circumstances under which the agreement can be terminated or will expire.]

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