A service gateway processes a service request received from a host based on a dynamic service response time of a server. In an exemplary embodiment, the service gateway relays a service request to a server over a service session between the service gateway and the server; receives a service response from the server; calculates a dynamic service processing time for the service request from a service request time and a service response time; compares the dynamic service processing time with an expected service processing time; updates a server busy indicator for the server in response to the comparing, where the server busy indicator is maintained at the service gateway; and processes future service requests in accordance with the server busy indicator at the service gateway.