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Virgin Media O2 Business UK Replace SLAs with Success Agreements

Tuesday, Mar 29th, 2022 (11:20 am) - Score 2,296
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Broadband ISP Virgin Media Business and mobile operator O2 Business – part of VMO2 – have today attempted to “reimagine” the traditional Service Level Agreement (SLA) by replacing them with so-called “Success Agreements” (SA). But these will only be available for new large enterprise (250+ employees) and public sector customers.

Traditional SLAs usually reflect a set of contracted service guarantees, such as how long the operator pledges to take when repairing a broken connection, what kind of uptime you can expect from the service and the level or amount of compensation that will be received if the operator fails to achieve its pledges.

By comparison, the new SAs are said to reflect a “new way of working, built on successful outcomes rather than service deliverables alone.” This includes the introduction of customer-specific goals, guidance from executive-level managers on a “Success Board“, more flexibility (with a change allowance of up to 15%), reduced dual-running costs for the first three months, and a 25% service charge reduction if services don’t meet the SA goals in the first six months.

The SAs will also work to define specific goals or outcomes for each individual customer, although bespoke SLAs are nothing new for larger businesses.

Katy Liddell, VMO2B Director of Customer Excellence, said:

“We all know the benefits digital transformation brings, from improving employee experiences to revolutionising day-to-day operations. But we’ve also seen that becoming a more digital business can be a huge undertaking, and it’s time for customers to expect more from their suppliers. We want to simplify the move to digital for our large enterprise and public sector customers, so we’re introducing a whole new way of working together – built on partnership, flexibility and a unique commitment to their success. Welcome to the Success Agreement.

The Success Agreement goes above and beyond standard SLAs, by putting an organisation’s individual goals at the heart of our working relationship. We’ll work closely with our customers to define their digital goals, and help build a bespoke plan to get them there successfully. Ultimately, we’re judging our success not on what we do for them, but what they get out of working with us. So customers get all the benefits of digital change, without all the risk.”

At present we aren’t quite sure what to make of all this, but it’s definitely an interesting twist on the traditional approach to SLAs. We should add that the 25% service charge reduction only applies if the customer is unable to achieve its business objectives through the service in the first six months.

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Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and .
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Comments
2 Responses
  1. Avatar photo John Nolan says:

    Mark,

    There is an awful level of misunderstanding re SLAs – and all miss the point i.e. guarantees. See paper from ex colleagues of mine at https://bit.ly/34g2Zfy and note the engineering rigour in their analysis (as opposed to the nonsense dreamt up by marketeers).

    John

  2. Avatar photo Chris Sayers says:

    Too airy fairy for my liking, then again when has virgin media and good business practice gone together!

Comments are closed

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