SLA Trading Strategies

Implementing and offering other than best effort services in large scale IP networks, such as Internet, has been and still is one of the biggest challenges for network operators, (internet) service providers (I)SPs and vendors on route towards multiservice IP networks and internet. Service Level Agreements (SLAs) play an important role from providers ́ and the customers ́ business point of view while defining the negotiated and contracted service between the customer and the provider. SLA is much dependent on QOS parameters of the network service. Setting up of SLAs is nowadays very straightforward being static in nature and based on bilateral agreements between all participating domains. But the development is towards more dynamic provision of SLAs. SLA trading is the concept of exchanging and negotiating automatically the information of service provisioning, routing and pricing information between the providers [1]. This paper discusses the concept of SLA trading, its position in SLA framework and its strategic meaning for Internet economy and providers. SLA trading can be seen in the long term a key factor towards a market and business driven multiservice Internet evolution. Yet, there are some uncertainties in this evolution, like the lack of large scale real life experiences of multiservice IP networks and service offerings, not to mention the real life experience of SLA trading itself. But by planning and introducing a step by step SLA evolution roadmap starting from a static SLA offerings towards offerings based on dynamic SLA negotiation and trading, ISPs and network operators can make a smooth transition towards next generation multiservice Internet.