What Does Service Level Agreement Mean

For example, if service credits take effect if a service level outage has occurred twice in a given period, the SLA could indicate that the customer has the right to terminate the contract for hardware violations if, for example, the service level has not been reached eight times in the same period. As with service credits, each service level must be considered individually and weighted according to the importance of the business. With an online service, the availability of that service is crucial, so you can expect the right of termination to occur sooner than if you don`t provide routine reports in a timely manner. In addition, the SLA could consolidate certain service levels for the purpose of calculating service credits and the right to terminate in the event of a critical failure; SLAs sometimes include aggregated rating systems for these purposes. .

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