Service Level Agreement (SLA)

Contract with agreements on performance, availability and security of services.

SLA stands for Service Level Agreement: a contract between a service provider and a customer that sets out the service level owed, how it is measured, and what happens when it is missed. Unlike a general statement of intent, an SLA has numbers in it, and those numbers carry a consequence.

SLA, SLO and SLI

These three get used interchangeably and mean different things. Getting them straight matters when you negotiate, because a provider can hit every SLA while the service still feels unreliable to you.

TermWhat it isExample
SLI (indicator)The raw measurement.Successful requests as a share of all requests
SLO (objective)The internal target for that measurement. No contractual force.99.95% of requests succeed each month
SLA (agreement)The contractual promise, usually set below the SLO, plus the remedy.99.9% or you receive service credits

The gap between the SLO and the SLA is deliberate. A provider that promises exactly what it targets has left itself no margin, so treat an SLA identical to the advertised SLO as a warning rather than a selling point.

What an SLA needs to say about security

Availability is the clause everyone reads. The clauses that matter for your own compliance are usually further down, and they are the ones an auditor asks to see when your supplier handles personal or business-critical data.

ClauseWhat to require
Breach notificationA fixed window in hours, not "without undue delay". Your own 72-hour clock starts once you know, so the later your supplier tells you, the less of it you have left.
Audit and evidence rightsThe right to request an ISO 27001 certificate or SOC 2 report, and what happens if it lapses.
SubprocessorsNotice before a new one is added, and a right to object.
Recovery targetsRTO and RPO as numbers, so continuity claims are testable.
ExitData return format, deletion deadline, and assistance during migration.

Where SLAs meet ISO 27001

Supplier agreements are covered by Annex A 5.20, addressing information security within supplier agreements, sitting under A.5.19 for supplier relationships generally. A.5.22 then expects you to monitor and review what the supplier actually delivers.

That last one is where most organisations fall short. Signing a strong SLA is evidence of a control being designed; showing that you read the reports and acted on a breach of it is evidence of the control operating, which is what an auditor tests.

Common mistakes

The most common is treating service credits as a remedy. A credit worth a few percent of one month's fee does not cover a day of downtime, so it prices the provider's risk rather than protecting yours. Read it as a signal of confidence, not compensation.

Next is measuring nothing. If nobody compares the monthly report against the agreed target, the SLA is a filing-cabinet document, and you will discover it during an incident rather than before one.

Last is the uptime definition itself. Check whether planned maintenance is excluded, how a partial outage is counted, and who does the measuring. A 99.9% promise that excludes maintenance windows and only counts total failures can coexist with a service you cannot rely on.

Frequently asked questions

What is a service level agreement (SLA)?
A service level agreement (SLA) is a contract that defines the level of service a provider commits to deliver, including measurable targets such as uptime, response times and resolution times.
What does SLA stand for?
SLA stands for Service Level Agreement.
What should an SLA include?
A good SLA specifies the services covered, measurable performance targets such as availability and response times, the responsibilities of each party, and the consequences or remedies if targets are not met.