Business SystemsSLA

Service Level Agreement

Short definition

A formal contract between a service provider and the customer that defines the guaranteed performance level (e.g., 99.9% uptime) and compensation if violated.

Extended definition

An SLA specifies: uptime, response time, resolution time, and compensation. For example, a 99.9% SLA allows at most 8.7 hours of downtime per year. AWS and Azure offer SLAs with automatic financial credits if violated.

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Cloud Service SLAs

Example & use case

Ortech ERP SaaS offers an SLA of 99.5% uptime, sub-2-second response, and a 10% credit if violated.

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