A Service Level Agreement (SLA) is a formalized contract or commitment between a service provider and a client that specifies the level of service expected during the term of the agreement. SLAs define various aspects of the service, such as:
Performance Metrics: Indicators like uptime, response times, and resolution times that the service provider promises to achieve.
Responsibilities: Both the service provider's and the client's duties and responsibilities are outlined.
Penalties/Remedies: Consequences for not meeting the agreed-upon service levels, which could be financial or another form of compensation.
Review and Reporting: The frequency of performance reviews, and the reporting methods and tools used to monitor and measure service levels.
SLAs can be used in various industries and are common in IT services, telecommunications, and cloud computing, among others. They provide a clear framework for both parties to understand the expected service quality and the remedies if those expectations aren't met.