The SLA is usually one of two basic agreements that service providers have with their customers. Many service providers establish a framework service contract to determine the terms and conditions under which they work with customers. The SLA is often incorporated by reference into the service provider`s framework service agreement. Between the two service contracts, the SLA adds greater specificity in terms of the services provided and the metrics used to measure their performance. As applications move from dedicated hardware to the cloud, they must achieve the same or even more demanding service levels than traditional installations. SLAs for cloud services focus on data center characteristics and more recently include network features (see Carrier Cloud) to support end-to-end SLAs. [11] The SLA must include a detailed description of the services. Each individual service should be defined, i.e. it is necessary to describe what the service is, where it is to be provided, to whom it is to be provided and when it is necessary. For example, if one of the services is the delivery of a particular report, the appropriate layout of the SLA should describe the report, indicate what it should contain, specify its format (possibly in relation to a particular template), how it should be delivered (e.B. by email), to whom, when and how often (e.B to the finance team every day at 10 am.m every day of the week). A customer service level agreement exists between the provider and an external customer. An internal SLA resides between the vendor and its internal customer, it can be a different organization, department, or location.

Finally, there is a vendor SLA between the vendor and the vendor. Any professional looking to develop their career in IT service management should consider an ITIL v4 certification course. After the ITIL Foundation certification, you can help a business organization implement IT service management best practices and use IT as a tool for its growth or change. Here you define the responsibilities of the service provider and the customer. To develop a well-organized service level agreement, six key elements must be included in this excellent template: Make sure the metrics reflect the factors that are under the service provider`s control. To motivate good behavior, SLA metrics must reflect the factors that are under the control of the externalizer. A typical mistake is to punish the service provider for delays caused by the customer`s lack of performance. For example, if the customer provides application code change specifications several weeks late, it is unfair and demotivating to keep the service provider on a predetermined delivery date. Making the SLA two-way by measuring the client`s performance in interdependent actions is a great way to focus on the expected results. Service level credits, or simply service credits, should be the only recourse available to customers to compensate for service level outages. A service credit deducts an amount of money from the total amount payable under the contract if the service provider does not meet service delivery and performance standards. In addition to defining performance metrics, an SLA can include a downtime management plan and documentation on how the service provider will compensate customers in the event of a breach of contract.

Service credits are a typical way. For example, service providers may provide credits that correspond to the time they have exceeded the SLA performance guarantee. A service provider may limit performance penalties to a maximum amount of dollars to limit the risk. Cloud providers are more reluctant to change their standard SLAs because their margins are based on providing basic services to many buyers. .