Mercuri's "Services SLA Paradox"
Paid services haven't taken off because there aren't SLAs from Service Providers.
There aren't SLAs from Service Providers because people aren't paying for services.
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When someone gives you something for free, they have no obligation to you and you have no recourse if something goes wrong. When I was a student, if I was moving to a new apartment, my friends would would help me pack up my old place, load the truck, and unload it at my new apartment. Sometimes people would show up late, sometimes things would get broken, but hey, they were doing me a favor, so I had no room to complain.
When I move now, I hire a moving company. Why? Because my time is more valuable to me than it was 15 years ago, and I also have much more expensive stuff. If I was scheduled to move out of a house on the 31st, and the mover's truck broke down, I'd want to make sure the company could swap in another truck from their lot. If my $4,000 television is dropped, I want someone who's insured and who's going to make it right.
Today, we have a number of people giving away services - Google, Yahoo, Flickr, Amazon, StrikeIron, etc. While there are exceptions like Amazon and StrikeIron that are doing some good work in the utility services space, where they're doing metered usage, I've had a hard time finding SLAs anywhere else. People are doing interesting mash-ups with 'free stuff', but is anyone willing to put free stuff in their application for any key piece of functionality? If you do, and you don't have SLAs, you're a gambler, and for your sake, I hope you're very lucky.
At the Web Builder 2.0 conference held earlier in the month, Day 1's keynote had a speaker who talked about Ajax and mashups, using his company's product as an example. At the end of the presentation, he opened up the floor for Q&A, at which point I asked him two questions - "what about SLAs" and "what about federated identity". The answers?
SLAs: These services are free, so there are no SLAs.
Identity: These services (Yahoo) are free, so that's not an issue.
I find it amazing that people don't pro-actively address the SLA and Identity issues, and I find it borderline irresponsible that 'experts' ignore or wave off these questions when raised. The need for SLAs should not be such a surprise, people who've spent time looking at the space at this have written about it, myself having done so back in 2001 ("14 Best Practices for Selecting a Web Service Provider", 2001, .NET Magazine, Fawcette) Yes, it's cool to include maps, search, and images in my application but if the service code go down - or disappear entirely - at any time, for many scenarios they're a non-option.
If you want to use services for anything real - and by real I mean something you'd use in a key area of an Enterprise or Commercial Software/WebSite - you need to have a Service Level Agreement. Using a service effectively moves a third party from being a vendor to being a business partner. The service provider controls the hardware, the bandwidth, the support, etc. but the service interactions are exposed through your application, with your brand, and your reputation attached to it.
With today's lack of SLAs, if the service goes down for an hour on Thursday, it goes down for an hour on Thursday. Moreover, there's no guarantee that the service is going to be around for a week, a month, a year, etc. Google just announced (http://news.com.com/2061-10812_3-6145053.html) that they're no longer taking on new customers for the SOAP API they'd been offering. They're moving new customers to an AJAX API. If you were evaluating this and building this functionality into a spec for a smart client application you were developing, and now it's gone, sorry charlie. What were you expecting? You're not paying for it, so you can't complain. Without an SLA, no promises are ever made made by the provider, so there are no promises to break.
My argument is that SLAs are late to the game, because people aren't paying for services and people aren't paying for services because there are no SLA's. Something I've shamelessly named 'Mercuri's Services SLA Paradox'. There are some positive movements in the right direction - Amazon and StrikeIron come to mind - but they are definately the exception and not the rule.
If you're like me, you'd like to be able to leverage and mashup services that you can depend on. If we collectively don't stand up and insist on these, we're stifling innovation. I challenge you to ask the providers - at conferences, in forums, online and in person - "What is your SLA for your services and what will it take/cost for you to offer me this service in a dependable fashion?"