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The trend to outsourcing network services to third parties in a utility model has resulted in a new distributed application model where the hosting service, service providers and end clients constitute a co-dependent profit ecosystem. SLAs provide a means for the service provider to specify the target levels of performance and reliability and for the hosting service to arbitrate among competing services under resource constraint. In this paper, the authors propose a number of design principles for specifying and enforcing SLAs that allow service providers to obtain expected throughput from hosting systems.
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