What is a Service Level Agreement (SLA)?

A Service Level Agreement (SLA) is fundamentally a formal agreement that outlines the performance expectations between a service provider and the customer. It specifies the level of service that can be expected, including metrics such as uptime, response times, and responsibilities of each party. This document serves as a critical tool to manage customer expectations and ensure accountability, as it provides a clear understanding of what services are being rendered and under what conditions.

The essence of an SLA is to create measurable standards that guide the service provider in delivering their commitments, while also protecting the interests of the customer. By defining key performance indicators (KPIs) and service expectations, an SLA helps prevent misunderstandings and provides a framework for evaluating the quality of service delivered.

In contrast, options that describe leasing contracts, troubleshooting policies, or customer support methods do not capture the primary function and purpose of an SLA, which centers on defining service expectations and performance metrics.