application contracts/SLA's

what kinds of contractual clauses/SLA's do you cover when you buy say an ERP application from a 3rd party, but install it on your own infrastructure? Obviously things like availability is mainly your responsibility, but from what I have seen the 3rd party still often offers a degree of incident response for things at the application layer.

We are looking at a number of these types of arranges/contracts from an IT risk perspective, so some pointers on what should be in each is most useful. Many apps now are delivered through a SaaS type model, but others still like to manage and install the applications on their own internally governed servers/infrastructure.
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pma111Author Commented:
surely somebody deals with this kind of thing?
Jian An LimSolutions ArchitectCommented:
let's break the solution in to multiple phase.

question you might want to ask the 3rd party is ask them to provide their SLA.
usually, on a priority especially ERP on your infrastructure, you control availability and configuration, they got zero control your environment.

i will looking at priority level, for example
priority 1, a failure or problem where a business function cannot operate an no work-around is available
priority 2, a failure or problem that significantly impair business function
priority 3, a failure or problem with limited business impact
priority 4, a failure or problem with no current business impact

SLA also have 2 component, commence time and resolution time.
while most company (if there are 24X7), they can guarantee commence time, but resolution time will be dependent on your issues (usually no one will guarantee the resolution time but agree to work with you as long you have some one alive with them)

These company might include a support in maintenance contract (symantec, and etc) and they include SLA on it (you just need to ask what their current practice). some of them just don't have a support in your region (imagine local shop that only have few users)

so these question always need to ask before you commit any product.

Also, you need to work out your BCP (business continuity plan) or reduce risk like running server-based snapshot and restore to the latest working recovery, running high availability.

In short, application usually don't break unless some one make a change on it .. and they always provide the require support (phone or web) to you.

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