The critical facilities industry uses service level agreements, or SLAs, extensively. SLAs vary greatly and are used both internally within corporations, between landlords and tenants—especially within colocation (“colo”) facilities—and between owners and outside service providers. When written and implemented correctly, SLAs are excellent tools for establishing performance standards and measurements to keep critical operations on course. When written poorly, they can waste valuable resources. And if not implemented properly, they can result in a false sense of security and ugly outcomes.

Typically, SLAs define a level of performance without specifying how the performance is met. For example, IT and facilities management (FM) can agree that the data center will maintain server inlet conditions within the ASHRAE Thermal Guidelines at all times. IT doesn’t dictate how FM accomplishes this, but the SLA should describe how compliance is measured and verified. FM might also establish an SLA with a rental, roll-up chiller provider. Where the supplier obtains the chiller or how he transports it is not specified, just that it arrives on-site and on time.