Friday, March 21, 2008

Web services/SaaS case study: independent SLA audit

Web 2.0 Company ABC provides 24/7 web services (SaaS - software as a service) based on monthly subscriptions. They have about 500,000 subscribers. They host the service on third party data center. The provider guarantees 99.99% network uptime.

In fact the application was slow during certain hours, and poor application performance raised customer complaints, cancellations, and lowered the retention rate by 5%.

3rd party external website and network monitoring discovered that the effective SLA of the application was about 95% - partially because of application performance itself, partially because of ISP bandwidth issues.

ABC using the monitoring statistics could push ISP to provide higher uptime, and also made additional investments by clustering the application database. With these measures the uptime increased, customer satisfaction increased, subscription terminations radically descreased, and annual revenue increased by $0.5M. In addition reduced number of tickets lowered service support cost

1 comment:

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