What does SLA mean?

Service Level Agreement, or SLA, is a contract between a service provider and a client that defines the level of service the provider is committed to delivering. It includes metrics such as uptime, delivery time, response time, and resolution time.

SLAs are crucial for both parties as they establish clear expectations, provide a basis for measuring performance, and outline the course of action if the requirements are not met.

SLAs are typically created through negotiations, with both parties agreeing on the specific services, performance metrics, responsibilities, and potential penalties.

It usually involves a client (internal or external) and a service provider, but can also be between different business units within the same organization.