In the next section, the contract summary should include four elements: There are three basic types of SLAs: service level agreements for customers, internal agreements, and vendors. A indemnification clause is an important provision in which the service provider undertakes to indemnify the client company for breaches of its guarantees. Indemnification means that the supplier must pay the customer all legal fees of third parties resulting from the breach of warranties. If you are using a standard SLA provided by the service provider, it is likely that this provision is missing. Ask your in-house counsel to draft a provision that is simple to include, although the service provider may wish for further negotiations on this point. Another concrete example of an SLA is a service level agreement from an ISP. This SLA includes an uptime guarantee, but also sets package delivery expectations and latency. Packet delivery refers to the percentage of data packets received in relation to the total number of data packets sent. Latency is the time it takes to transfer a packet between clients and servers. Here you define the responsibilities of the service provider and the customer. The aim should be a fair integration of best practices and requirements that maintain the service and avoid additional costs. Most service providers understand the need for service level agreements with their partners and customers. But creating one can seem daunting, like you don`t know where to start or what to include.
In this article, we will introduce some examples and templates to help you create SLAs. For the defined measures to be useful, an appropriate baseline must be established, with measures defined at an appropriate and achievable level of performance. This baseline will likely be redefined throughout the participation of the parties to the agreement using the processes set out in the “Periodic Review and Amendment” section of the SLA. Overall, an SLA typically includes an explanation of the objectives, a list of services to be covered by the agreement, and a definition of the responsibilities of the service provider and the customer under the SLA. What is usually an SLA document? Aspects of the Service, including responsibilities, quality and availability, shall be agreed between the Service Provider and the Service User. Therefore, you need to make sure that you can deliver the promised product at the promised time. Availability is also a commonly used measure for data services such as shared hosting, virtual private servers, and dedicated servers. Common agreements include percentage of network availability, availability, number of scheduled maintenance windows, and more.