Service Level Management establishes, reports and maintains the delivery of agreed-upon service levels to customers. SLM also acts to correct poor service levels.
Capacity Management is the process of optimising the current and future capacity needs and performance aspects of the business requirements.

SLM Objectives:
Measuring service performance
Providing an improved quality of service
Ensuring that both the customer and the IT Organisation are aware of their responsibilities and roles

SLM Stages:
1. Negotiation
2. Finalising
3. Monitoring
4. Reporting
5. Reviewing

Common Features of most SLAs: Service Description, Service Hours, Service Availability, Support Levels, Performance, Functionality, Charges, Continuity, Security, Changes.

SLA Structures:
Multilevel - Corporate level (service catalog), Customer level, Service level
Service based (covers one service for all of the customers of that service)
Customer based (covers one customer group for all of the services they use)

NEGOTIATION:
Service Catalog - describes IT services, including the key features of all IT services that the IT service organisation can offer.
Service Level Requirements - detailed definitions of customer needs
Operational Level Agreement - agreement among internal providers, covers the delivery of services that support the IT organisation
Underpinning Contract - contract with external supplier, support or maintenance agreements to cover the delivery of services that support the IT organisation

FINALISING
Drafting, Amending, Completing the SLA and supporting agreements

MONITORING
both technical and procedural actions

REPORTING
compare agreed-upon service levels and measured service levels

REVIEWING
Considering certain aspects, including problems related to services and changes within the agreed-upon service levels
Creating a service improvement program (SIP) to ensure that those IT services not meeting the agreed-upon service levels are improved

SERVICE LEVEL MANAGER is responsible for:
Creating and updating the service catalog
Defining and maintaining an effective SLM process, specificall in regard to the SLAs, OLAs and UCs.
Updating the existing SIP by reviewing the performance of the IT organisation and improving performance where necessary

Metrics:
The number of times an SLA was not fulfilled
The cost of measuring and monitoring the SLA
The progress of improvement actions
Customer satisfaction, based on survey complaints
Statistics about incidents, problems, and changes

Costs:
Personnel
Training and documentation

CAPACITY MANAGEMENT
Objectives:
- reduced costs
- reduced business disruption
- optimum workload throughput

Inputs: technology, business plans, procedures, processes and related information used by each of the subprocesses
Subprocesses:
Business Capacity Management (ensures that future business requirements for IT services are considered, planned for, and implemented as needed)
Service Capacity Management (ensures that the performance of all services, as detailed in the targets in SLAs, are monitored and measured)
Resource Capacity Management (ensures that all components with finite resources are monitored and measured)
Outputs: capacity plans, databases, reports, changes, recommendations

Service and Resource Capacity Management subprocess activities:
- demand management: attempts to influence demand for capacity, moves demand so that an infrastructure component is not overloaded, looks at capacity requirements and arrangements for the short and long term
- monitoring: ensures that the agreed-upin service levels can be achieved. CPU utilisation, disk utilisation, network utilisation, number of licenses
- analysis: trend analysis can predict future utilisation, initiate efficiency improvements and acquisition of additional IT components
- tuning: helps better utilise system resources or improves performance of a particular service. Itentifies actions for optimising systems based on analysis
- implementation: implementing changed or new capacity

Capacity Database (CDB) is a subset of the CMDB.
Business Capacity Management subprocess activities:
- modeling: making predictions about the behaviour of infrastructure and determining capacity requirements. Forecast how utilisation may change
- application sizing: considers the resources needed to run new or changed applications. Includes information about expected performance levels, necessary hardware, and costs. Estimate the resource requirements for new systems.
- capacity planning: creating and maintaining the Capacity Plan. Looks to future needs. Capacity Management (CM) produces the appropriate recommendations to include in the Capacity Plan

Capacity Management factors: thresholds, planned changes.

Problems with CM:
Unrealistic expectations by customers
A lack of appropriate information regarding current and future business requirements
Implementation in distributed environments

Costs with CM:
Project management costs associated with the implementation of the process
Personnel, training and support costs
Costs for the capacity database, modeling tools for simulations and statistical analysis, and reporting tools