[WEBINAR] Application Acceleration: Faster Performance for End Users

Service Level Agreement (SLA)

Definition - What does Service Level Agreement (SLA) mean?

A Service Level Agreement (SLA) is the service contract component between a service provider and customer. A SLA provides specific and measurable aspects related to service offerings. For example, SLAs are often included in signed agreements between Internet service providers (ISP) and customers.

SLA is also known as an operating level agreement (OLA) when used in an organization without an established or formal provider-customer relationship.

Techopedia explains Service Level Agreement (SLA)

Adopted in the late 1980s, SLAs are currently used by most industries and markets. By nature, SLAs define service output but defer methodology to the service provider's discretion. Specific metrics vary by industry and SLA purpose.

SLAs features include:

  • Specific details and scope of provided services, including priorities, responsibilities and guarantees
  • Specific, expected and measurable services at minimum or target levels
  • Informal or legally binding
  • Descriptive tracking and reporting guidelines
  • Detailed problem management procedures
  • Detailed fees and expenses
  • Customer duties and responsibilities
  • Disaster recovery procedures
  • Agreement termination clauses

In outsourcing, a customer transfers partial business responsibilities to an external service provider. The SLA serves as an efficient contracting tool for current and continuous provider-customer work phases.

Techopedia Deals

Connect with us

Techopedia on Linkedin
Techopedia on Linkedin
"Techopedia" on Twitter

Sign up for Techopedia's Free Newsletter!

Email Newsletter

Join thousands of others with our weekly newsletter

Free Whitepaper: The Path to Hybrid Cloud
Free Whitepaper: The Path to Hybrid Cloud:
The Path to Hybrid Cloud: Intelligent Bursting To Amazon Web Services & Microsoft Azure
Free E-Book: Public Cloud Guide
Free E-Book: Public Cloud Guide:
This white paper is for leaders of Operations, Engineering, or Infrastructure teams who are creating or executing an IT roadmap.
Free Tool: Virtual Health Monitor
Free Tool: Virtual Health Monitor:
Virtual Health Monitor is a free virtualization monitoring and reporting tool for VMware, Hyper-V, RHEV, and XenServer environments.
Free 30 Day Trial – Turbonomic
Free 30 Day Trial – Turbonomic:
Turbonomic delivers an autonomic platform where virtual and cloud environments self-manage in real-time to assure application performance.