  Outsourcing of complex IT infrastructure to IT service providers has
increased substantially during the past years. IT service providers must be
able to fulfil their service-quality commitments based upon predefined Service
Level Agreements (SLAs) with the service customer. They need to manage, execute
and maintain thousands of SLAs for different customers and different types of
services, which needs new levels of flexibility and automation not available
with the current technology. The complexity of contractual logic in SLAs
requires new forms of knowledge representation to automatically draw inferences
and execute contractual agreements. A logic-based approach provides several
advantages including automated rule chaining allowing for compact knowledge
representation as well as flexibility to adapt to rapidly changing business
requirements. We suggest adequate logical formalisms for representation and
enforcement of SLA rules and describe a proof-of-concept implementation. The
article describes selected formalisms of the ContractLog KR and their adequacy
for automated SLA management and presents results of experiments to demonstrate
flexibility and scalability of the approach.
