SLA
Also: Service Level Agreement, Service-Level Agreement, Service Level Agreements, Accord de niveau de service, Contrat de niveau de service, Dienstgütevereinbarung, Service-Level-Vereinbarung
A formal commitment defining the service level a provider guarantees to a customer, with measurable targets and consequences if they are missed.
What It Is
An SLA (Service Level Agreement) is a written commitment between a service provider and a customer that sets specific, measurable targets for how a service will perform, along with what happens when those targets are missed. It moves a promise from vague reassurance ("our platform is reliable") to a number that can be checked ("99.9% uptime, response within four business hours"). SLAs appear in cloud contracts, software subscriptions, marketing agency retainers, outsourced support, and increasingly in the delivery agreements between internal teams.
Why it matters
For a senior leader, the SLA is where risk becomes explicit and pricing gets justified. A weak SLA transfers operational risk onto your organization without you noticing until an outage hurts revenue or reputation. A CFO reads the SLA to understand what "guaranteed" actually covers and what the penalty (often a service credit rather than cash) is really worth. A CMO signing with a martech vendor checks whether campaign data will be available during peak launch windows. A CDO relying on a data platform confirms latency and recovery-time commitments before betting reporting on it. The SLA also shapes internal accountability: sales and marketing teams frequently agree an internal SLA (marketing delivers X qualified leads, sales follows up within Y hours), turning a recurring argument into a tracked metric.
How it works
An SLA rests on a few components. Service metrics define what is measured: availability, response time, resolution time, throughput. Targets set the threshold (for example 99.95% monthly availability). Measurement rules state how and by whom performance is tracked, since a target means nothing without an agreed way to count it. Remedies specify the consequence, usually service credits scaled to the severity of the miss, plus escalation and termination rights for repeated failures. Exclusions carve out what does not count, such as scheduled maintenance or customer-caused issues. In practice, a leader negotiating an SLA should push on three things: is the metric one that matters to my business outcome, is the measurement independent and visible to me, and is the remedy large enough to change the provider's behavior. A service credit worth a fraction of one month's fee rarely does.