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An Application of Central Limit Theorem to Wide Area Network Service Level Agreement Analyses
by Sean Farney, Global Network Architect
Abstract
In this paper I analyze Round Trip Delay (RTD) Service Level Agreements (SLA) on a global MPLS Wide Area Network. Specifically, latency in milliseconds measured between a Data Center facility in Boston and 20 remote locations. The monthly mean of the actual delay is compared to the maximum delay allowed under the terms of the contract, the “latency SLA”, and the Central Limit Theorem is applied to assess the probability of exceeding the SLA. The expectation is that the data will establish or challenge the efficacy of the provider guarantees. After performing the analysis, it is clear that the latency SLAs are ineffectual- the Theorem demonstrates that the probabilities of experiencing the conditions which would invoke SLA violation that are so low as to be nonexistent. We see an average distance from the expected mean equal to eight σ, falling within three σ in only five instances. Given such results, I suggest that a more efficient model for SLA construction and measurement is required. Finally, I question the need for managed bandwidth services if latency is perceived as a competitive advantage.
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