SLA — Meaning and details

Service Level Agreement

SLA stands for Service Level Agreement, a formal contract between a service provider and a customer that outlines the expected level of service, performance metrics, and responsibilities.

SLAs are used to define clear expectations, provide accountability, and establish consequences for unmet obligations. They’re commonly used in IT services, cloud computing, customer support, and managed service agreements.

Key elements of an SLA include:

• Uptime commitments: Guaranteed service availability (e.g., 99.9% uptime).
• Response and resolution times: How quickly issues will be acknowledged and resolved.
• Performance metrics: Specific KPIs such as bandwidth, latency, or transaction speeds.
• Penalties or credits: Remedies if the service provider fails to meet SLA terms.

SLAs ensure transparency and help maintain strong client-provider relationships.