How To Calculate a Service Level

One of the questions you get served when yourAll depends on your requirements for the service. If
investment profile is determined is this one: "how wouldyou are exploiting an internet business, your website
you define an exception? Is that an event that occurswill not be available when the service provider is
1 out of 50 times, 1 out of 100 , or ...:"dealing with a problem.
Not only when dealing with investments, but also for aIf this problem takes 2 hours to solve, after which
service level you are dealing with exceptions.everything is ok again, than the service level has
And then the question is; what will happen? How longdeclined by X-percent.
will I be out of service? What is the (quality) level ofTo calculate this (X) percentage, take a month as a
this service?reference. In this month there are (in august) 31 days,
The best service provider is "always up and running."with each 24 hours. In total there are 744 hours that
But in practice this is not feasible. A service is amonth.
provision of any kind to third parties. And such aA "down-time" of 2 hours will decline the service level
service is important because it enables othersby 0.3% (2 divided by 7.44), leaving the level for that
(individuals and companies) to do their work.month (if nothing else happens) 99,7%. A downtime of
If the service is not functioning, others have a big7.44 hours will diminish the service level by one
problem, because having no service will inhabit them topercent, leaving the level up to 99%.
continue their (own) work.This is only one month and one incident. Is this
And therefore a service level agreement is importantexceptional? You should check you service level
to manage this level with the third party that providesagreement, if the calculation is not done per year. And
you the service. A service level of 98% percent, forwhat they understand as an exception, 1 out of 50
example could then be a figure that you both agreeprobably -- a service level of 98%. Let's hope it's
for the service. Would this be fair.enough.