What is a service level agreement (SLA)?

A service level agreement (SLA) is fundamentally a contract that outlines the expected level of service a service provider is committed to delivering to its customers. It specifies the metrics of service quality, availability, and responsibilities, ensuring that both parties have a mutual understanding of service requirements. This contract serves to set measurable objectives and define the standards that must be met, which helps in managing customer expectations and establishing accountability for service delivery.

In the context of service-oriented environments, the SLA is crucial as it not only provides clarity regarding service standards but also specifies remedies for service levels that may not be achieved. Essentially, it's a formal agreement that supports a structured approach to service provision, making it essential for effective service management.