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Home/ Glossary/ SLA

SLA

SLA (Service Level Agreement) is an agreement that formally defines the service quality parameters provided by a supplier to a customer. An SLA specifies measurable service performance indicators, the responsibilities of the parties, acceptable deviations, and liability in case the agreed service levels are not met.

SLA is used in IT infrastructure, telecommunications, cloud services, and outsourcing to clearly document customer expectations and provider capabilities. Unlike a general contract, an SLA focuses specifically on service quality and availability rather than on legal aspects of cooperation as a whole.

Purpose of an SLA

The main purpose of an SLA is to define transparent and verifiable service quality criteria. This allows the customer to understand the level of reliability and support they can expect, while enabling the provider to formalize the limits of its responsibility.

An SLA also serves as a service monitoring and management tool. It is used as the basis for performance monitoring, reporting, and decisions on compensation or corrective actions.

Key SLA parameters

An SLA typically defines specific metrics used to evaluate service quality. The most common parameters include:

  • service availability (uptime) expressed as a percentage
  • response time and incident resolution time
  • allowable number and duration of outages
  • performance and latency parameters
  • technical support procedures and maintenance windows

All SLA metrics must be measurable and unambiguous to avoid disputes between the parties.

How an SLA works in practice

An SLA operates through continuous monitoring of service metrics. Data on availability, incidents, and performance is collected automatically using monitoring and logging systems. At the end of the reporting period, actual metrics are compared against the SLA targets.

If service levels are not met, the SLA may предусматривать compensation in the form of service credits, penalties, or other remedies. Importantly, an SLA does not imply absolute uninterrupted operation but defines acceptable deviation thresholds.

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Types of SLA

SLAs can be applied at different levels depending on the service structure:

  • customer-based SLA between provider and customer
  • service-based SLA for a specific service
  • internal SLA between departments within an organization

The choice of SLA format depends on the service delivery model and organizational structure.

The role of SLA in IT infrastructure

In IT and cloud environments, SLA is a key element of trust between customers and providers. It enables evaluation of the reliability of data centers, cloud platforms, hosting, and telecom services, and allows comparison of different providers based on objective criteria.

For enterprise systems, SLA is critical when hosting business-critical services where downtime directly impacts operational and financial performance.

Benefits of using an SLA

The main benefits of an SLA include:

  • transparent and measurable service quality requirements
  • reduced risks and uncertainty for the customer
  • formalized provider accountability
  • a foundation for service monitoring and improvement

At the same time, an SLA requires properly defined metrics and realistic target values; otherwise, it loses its practical value.

FAQ



An SLA is a document that defines the level of service quality and availability a provider is required to deliver.


A contract defines overall cooperation terms, while an SLA specifically sets service quality parameters and how they are measured.


Typically, service availability, incident response time, issue resolution time, and support procedures.


Not always. Most often, service credits or other forms of compensation defined in the SLA are used.


An SLA allows customers to control service quality and clearly understand what to expect from a provider.