Business and process
SLA
Also known as: service level agreement, support agreement, uptime guarantee
Definition
An SLA is a service level agreement: it fixes system availability as a percentage, response and resolution times by incident severity, the hours support operates, and the compensation owed when the provider fails to meet those numbers.
Availability is written as a percentage, and behind those percentages sit concrete minutes. 99.9% per month is roughly 43 minutes of downtime, 99.5% about 3.6 hours, 99% more than seven hours. The price gap between those tiers is a multiple, because every extra nine requires redundancy, monitoring and an on-call rota. Which leads to the practical question when choosing: what an hour of downtime costs your business specifically. For an online store in peak season it is lost revenue directly; for a corporate site usually not, and paying for 99.99% there buys nothing.
The second block is response and resolution, and conflating them is a mistake. Response time means the ticket has been accepted and work has begun; resolution time means the problem is fixed. A contract that fixes only response guarantees a polite reply in fifteen minutes and silence for three days. Both are set per severity class: critical (system unavailable or payments failing), high (a key journey broken with a workaround available), normal (an isolated defect), low (cosmetics and requests). The classification belongs in the contract, otherwise the argument about whether this counts as critical starts precisely when the outage does.
What to look at in the contract beyond the numbers. Support hours: 5x8 on business days and 24x7 are fundamentally different services at fundamentally different prices, and for a store a Saturday evening outage costs more than a Tuesday morning one. Exclusions: what does not count as downtime, such as planned maintenance, hosting or third-party failures, and the consequences of client-side changes. Measurement: without independent monitoring, availability is whatever the provider says it was. And compensation: without it an SLA is a statement of intent rather than an obligation, though expecting recovery of lost profit is unrealistic, since standard practice caps compensation at a share of the retainer.
Related terms
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