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Service Level Agreement

A service level agreement (SLA) is a contract between a service provider and its customers or end users. The agreement broadly documents the services the provider will furnish. SLAs originated from network service providers but are now common among businesses such as cloud computing and server hosting services. SLAs are created so that services offered can be measured in terms of quality and also compared with others.

SLAs are useful in measuring the performance of the service provider and quality on many parameters. These may include availability and uptime, the response of support staff to various types of problems, the quality and time of resolution, notification schedules, statistics provided and other aspects.

SLA must also include the precise procedures for reporting problems and how to escalate the process if an effective resolution does not happen at the first level. The SLA must also identify the appropriate monitoring agencies and how data will be collected for analyzing performance and results. The consequences for not meeting the various clauses of the SLA must also be mentioned in the SLA. These may include monetary compensation or some form of reimbursement. Clear reasons must be mentioned for the termination of the contract between the company and the client. 

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