SLAs in Web Software
October 10th, 2007
Service Level Agreements are a must-have for Enterprise clients and it has surprised me that so few web companies have used them as a route to making money: if you don’t need an SLA, take the app for free. If you do want an SLA (because say your entire email operation is running on our web service, say), then you need to pony up some cash. It’s worked in open source, so I think it’s a no-brainer for an industry that is service-orientated at its core.
Good news then that Amazon S3 has today announced an SLA which means if they drop below 99.9% uptime per month you can have some cash back. You get even more money back if they drop below 99% uptime. They also agree to give you 60 days notice if they want to get rid of you for any reason - but don’t have to give that reason.
It’s a step in the right direction, but they could make even more money by offering even better SLAs if customers are prepared to spend more money to get them. That money would be capital Amazon would be free to invest in infrastructure which not only enhances S3, but Amazon’s core systems and business.
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