Service Level Agreement

Important Definitions to Understand Service-Based SLA

SLA is the abbreviation of Service Level Agreement that is documented between a customer and a service provider involving the particular and quantitative features of service offerings. SLA also specifies the expectations regarding service quality, availability and corresponding responsibilities

SLAs are documented to ensure service executives receive clarity regarding what the customers expect from them, what they have to do to meet the client’s necessities and the ultimate result. Approved managerial instruments govern the monitoring of SLA. Without incorporating them, you cannot ensure effective management.

How to track SLAs?

Over time, statistics along with KPIs or key performance indicators serve as the fundamental elements empowering the SLAs. You need to learn about the features of ideal SLA management tools to keep an eye on these metrics.

Service metrics can be monitored over a fixed period through SLA management tools. This step is often ignored, later on, giving rise to poor service reviews by various clients. Thus considering them will ensure optimum user experience. Besides this, end-to-end service quality will become transparent. These instruments are programmed to process metrics to produce reports indicating the efficiency and productivity of vital activities. It contributes to the entire service delivery. The SLA management tools even provide technical support to guide service vendors in resolving new or complicated problems; this creates a scope for service improvement.

SLA management demands the governance of particular key performance indicators. These include:

  • Feedback on service performance
  • Defect percentage or defect rate
  • Average frequency to answer
  • Availability of services
  • Service uptime
  • Security provided to the clients’ databases
  • MTTR or mean time to restore
  • TAT or turnaround time

MTTR defines the average duration consumed to recover a failed service by revitalising the whole system to its operational condition. It is time for a service provider requires to complete the repair activities.

Turnaround time is the number of hours or duration required by a vendor to complete assigned work. This metric indicates how efficient your chosen agency is, as the sooner they can finish one task, the quicker you can hand over the next pressing problem to them.

Besides the benefits described above, an SLA management tool gives you insights into service standards at both broader and grassroots levels. Clubbing service-based SLAs with auxiliary management practices like an ITSM hub in a centralised platform allows us to monitor all the tickets in a single window. This is helpful to attain a quick perception of factors affecting overall service quality.

In a nutshell, an SLA management tool facilitates:

  • Pointing out service delivery breaches
  • Reviews performance over a time
  • Set up auto alerts to retrieve quick responses

Responding to user feedback now and then helps you develop service dispensing strategies and enhance overall service quality.

In the next section of the article, we briefly discussed a few SLA terms in everyday use. Once you go through them, you will have a vivid concept of SLA management tools.

Cloud service provider data

This includes a pool of data objects particularly assigned to facilitate the functioning of a cloud service. The cloud service provider data imbibes utilisation of information and resource set up, storage along with network component allocation, A-Z configuration of the data centre, operational expenses, online and physical resource failure rates, and functional expenses. Thus the scope of cloud service provider data is immense.

Data controller

This term refers to legal executive personnel, the public agency or any authoritative council registered as stand-alone or jointly operating with other entities to develop ways of processing a host of personal data.

Disaster recovery

It defines the trait of all ICT elements in a firm to backup every possible vital business function maintaining prime quality within a fixed time followed by a disruption.

Data integrity

This is an intrinsic property of data security management tools that aims to safeguard the preciseness and value of assets.

Data Subject

This component generally incorporates a specific reference in the form of an identification number that helps you identify stored information in the system either directly or indirectly. Apart from a unique ID, several credentials specific to the data can also be set to secure authentic access. This includes security questions, passcode, etc.

Failure notification policy

This circular defines the procedure through which customers availing of cloud services can notify their service provider about any service breach that has occurred as per their expectations. The opposite communication channel, i.e., the service provider’s reply, is also allowed using this instrument.

The policy outlines the maximum period expected between noticing any service breakdown and corresponding report issuance from the client’s end. It also measures the time taken to update any service outage and details of all the service complaint reports.

MSA or Cloud Services Master Agreement

This is another legal paper that considerably impacts cloud services. This reads the conditions approved between the client and the service provider. If any of the associated parties disapprove of the terms, then the availability of the cloud services is stopped.

Many other terminologies have subdued the word MSA such as “agreement”, “terms of service”, “customer agreement”, etc. Many subheads are distributed under a single umbrella named the ‘MSA’. These are Security & Privacy Terms, Cloud SLA, Business Continuity Policy, Service Description and Acceptable User Manual.


SLAs act as primary legal bonds crucial to building trustable relationships. SLAs are helpful for you and your service vendor. These tools ensure client needs are met and provide insight to the IT team. This gives the companies ample room to resolve issues and reply to customer complaints without delay.

Service Level Agreements are nothing but service-oriented legal terms and conditions. It helps to standardise the dispense of timely services, thus contributing to enhanced trust among the three entities concerned. Also, the SLA gets rid of uncertainty of services.

SLAs formalise tech communications; thus, customers can seamlessly lodge their complaints without facing any difficulty that used to arrive in the past resulting from complicated IT terms. SLAs encourage an open-ended conversation where customers and service providers can make a service-related decision per the agreed-upon conditions.

SLAs guarantee efficiency by establishing standard resolution periods for each task for the IT teams. This generates true customer satisfaction and refines the IT team’s skill set. Timely services reach the patrons without fail.

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