SLA
A Service Level Agreement (SLA) is a formal contract between a service provider and a customer that defines the specific level of service the customer can expect, such as guaranteed uptime or response times.
How it works
It works by establishing measurable metrics, like 99.9% system availability, and often includes consequences for the provider if these targets are not met. This matters because it creates accountability, sets clear expectations, and is a key factor in building trust for any cloud-based or SaaS product.
Examples
- 1.A cloud storage provider guaranteeing 99.99% uptime in its contract.
- 2.A customer support software committing to respond to critical tickets within 1 hour.
- 3.An AI API platform promising a maximum latency of 200 milliseconds for inference requests.
