A Service Level Agreement, or SLA, is an agreement between service providers and clients which sets out specific requirements regarding the quality and availability of a service.
SLAs are frequently used in IT services, cloud offerings, Software-as-a-Service solutions, support contracts and technical infrastructure. They establish clear expectations and make the agreed service quality measurable.
Typical elements of an SLA include:
- Nature and scope of the agreed services
- Availability of a system or service
- Response and processing times
- Support and service hours
- Responsibilities of the contracting parties
- Procedure for reporting and escalating faults
- key performance indicators
- Reporting and documentation requirements
- Measures to be taken in the event of non-compliance
Examples of agreed service levels include:
| Service Level | Example |
| Availability | The system is available 99.9 per cent of the time each month. |
| Response time | Critical faults are dealt with within 30 minutes. |
| Solving time | A serious fault should be rectified within four hours. |
| Support hours | Support is available on weekdays from 8 am to 6 pm. |
| Data backup | Data is backed up once a day. |
Incidents are often categorised according to their urgency:
- Critical:Â The system has completely failed, or key processes cannot be carried out.
- High:Â Key functions are severely restricted.
- Means:Â Some functions are affected, but the system remains usable.
- Low:Â There are minor errors or general service enquiries.
An SLA offers companies and start-ups the following benefits, amongst others:
- transparent service requirements
- clearly defined responsibilities
- measurable service quality
- faster resolution of faults
- greater predictability for customers
- a clear basis for addressing performance issues
If agreed service levels are not met, the contract may provide for, for example, credit notes, price reductions, rectification of defects or special termination rights, depending on the terms of the contract.
A common mistake is to simply set out general statements such as „high availability“ or „rapid support“. An effective SLA should contain specific, measurable and realistic targets. It is equally important to define precisely how these targets are measured and what exceptions apply.
An SLA does not replace the entire service or software contract. It is often a component or an annex to the contract and focuses specifically on the agreed service quality.
SLAs are particularly relevant for start-ups when they offer business-critical software or technical services to corporate clients. innoWerft helps founders to better understand the requirements of potential clients, to develop B2B offerings professionally and to prepare for discussions with corporate partners.