Service Level Agreement (SLA)

A commitment between a service provider and customer defining the expected level of service, including metrics, responsibilities, and remedies for failures.

Also known as:Service AgreementService Contract

What is an SLA?

A Service Level Agreement (SLA) is a formal commitment between a service provider and customer that defines the expected level of service. It specifies metrics, responsibilities, and consequences for not meeting the agreed standards.

SLA Components

Service Description What services are covered.

Performance Metrics

  • Availability (uptime)
  • Response time
  • Throughput
  • Error rates

Responsibilities

  • Provider obligations
  • Customer obligations

Remedies

  • Credits for failures
  • Escalation procedures
  • Termination rights

Common Metrics

MetricDefinition
AvailabilityUptime percentage
MTTRMean time to repair
MTBFMean time between failures
Response TimeTime to first response
Resolution TimeTime to fix issue

Availability Levels

LevelDowntime/Year
99%3.65 days
99.9%8.76 hours
99.99%52.56 minutes
99.999%5.26 minutes

SLA vs SLO vs SLI

SLA External commitment with consequences.

SLO (Service Level Objective) Internal target.

SLI (Service Level Indicator) Actual metric measurement.

Best Practices

  • Define measurable metrics
  • Align with business needs
  • Include exclusions
  • Regular review
  • Clear reporting
  • Realistic targets