SLA (Service Level Agreement) Methods typically refer to the various approaches and
structures used to define, implement, and measure the performance expectations
between a service provider and a client. Recognizing these methods helps organizations
systematically set, monitor, and report on agreed service standards.
Main SLA Methods and Structures
1. Types of SLA Structuring Methods
• Service-based SLA:
• Covers a specific service delivered to all customers.
• Example: All users of a cloud storage service receive the same uptime
guarantee and support response time.
• Customer-based SLA:
• Tailored to one client, covering all the services used by that client.
• Example: A dedicated agreement with a large enterprise covering its full
suite of managed IT services.
• Multi-level SLA:
• Integrates several conditions or levels (corporate, customer, and service
level) within a single agreement, allowing different SLAs for different users
or services in the same contract.
• Example: A SaaS provider offers standard support for all, premium support
for key accounts, and custom add-ons for specific teams.
SLA Type Focus Example Use Case
Service-based A specific service for all Email uptime for all customers
Customer-based All services for one customer Bank’s SLA with IT partner for multiple IT functions
Multi-level Mix, by user/service/customer SaaS with tiers: standard, advanced, premium support
SLA Implementation and Measurement Methods
• Define Metrics (SLIs/SLOs)
• SLI (Service Level Indicator): Concrete measurement of a service's
performance (e.g., uptime %, response time).
• SLO (Service Level Objective): The target value/threshold for each SLI (e.g.,
“99.9% uptime per month”).
• Common metrics: uptime, availability, response time, throughput,
resolution time.
• Monitoring & Reporting
• Use real-time monitoring platforms to track SLA metrics (e.g., network
monitoring, incident trackers).
• Enhanced methods now include automated wireless sensors for
environmental and performance factors, yielding faster detection and
proactive compliance.
• Regular reports and dashboards ensure continuous visibility into SLA
adherence.
• Remediation and Review
• SLAs specify remedies or penalties (often service credits) if targets aren’t
met (e.g., credits for uptime below 99.9%).
• Periodic reviews allow updating targets and recalibrating expectations as
technologies and needs change.
• Example of Basic SLA Calculation
SLA (% uptime) = Total time−DowntimeTotal timeTotal timeTotal time−Downtime × 100
For example: If the allowed downtime is 8h 45m per year, the annual uptime target (SLA)
would be 99.9%.
Best Practices
• Establish clear, specific, and measurable objectives
• Select relevant metrics aligned with business goals and customer needs
• Automate monitoring for real-time compliance and easy reporting
• Clearly define consequences for underperformance and regularly review SLAs for
improvement
Summary:
SLA methods involve defining the agreement structure (service-based, customer-based,
or multi-level), setting measurable performance metrics (SLIs/SLOs), implementing
automated monitoring, and specifying remedies. These methods ensure clear
accountability and actionable standards for IT and managed services.
