What is Service Level Agreement?
A definition of Service Level Agreement
“A Service Level Agreement (SLA) is a contract between a service provider and a customer that outlines the expected level of service, performance metrics, and responsibilities of both parties.”

Business Glossary > What is Service Level Agreement?
Examples of Service Level Agreement in a Sentence:
The Service Level Agreement specifies the uptime guarantees for our servers.
Reviewing the Service Level Agreement helped clarify our service provider’s obligations.
The client insisted on including a Service Level Agreement for the IT services.
Why is Service Level Agreement Important in Business?
Understanding Service Level Agreements is essential as they ensure clarity and mutual understanding of service expectations, which helps in establishing trust and accountability between a service provider and a customer. This clarity can significantly reduce conflicts and improve customer satisfaction.
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Associated Terms
Here are some associated business terms and synonyms for “Service Level Agreement”:
- SLA
- Performance Contract
- Service Contract
Amazon Web Services SLA
Amazon Web Services (AWS) provides a detailed Service Level Agreement for its cloud computing services. The SLA outlines the uptime percentages and compensation available to customers if AWS fails to meet the stated service levels.
Final Notes on Service Level Agreement
When defining a Service Level Agreement, ensure that both parties clearly understand the performance metrics, responsibilities, and consequences of not meeting the agreed standards. This understanding can prevent future disputes and ensure that both expectations are aligned.
This has been a definition of Service Level Agreement meaning.
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