nsure that the SLA classifies the non-availability of a single service component as ‘downtime’. In turn, this should assist in assessing whether the guaranteed service levels have been met.
2. Data access
Customers should take care to ensure that the SLA clearly defines what is meant by ‘availability’ and that it covers access to data. For example, if a customer using a cloud storage service can access its data or files previously saved on the cloud but cannot upload new data, it is questionable whether the service is technically ‘available’. Software bugs or accidental deletion can also affect the customer’s ability to access its files. A savvy customer would ensure that this section of the SLA addresses data back-up, data protection and redundancy/disaster recovery.
3. Performance – response and fix times
The customer should consider the performance and support levels that the cloud supplier is offering, in particular, the response and fix times. Response and fix times are often tiered by priority levels, based on the severity of the service downtime, and are usually determined with regard to impact on the customer’s business. For this reason, it is important to ensure that the SLA contains suitable response and fix times so that queries or services most critical to the customer’s business are responded to or repaired with the appropriate priority and are not just aspirational ‘targets’.
Are service credits being offered?
Service credits are the primary financial remedy for a cloud provider’s failure to meet the agreed service levels. An SLA will often include a list of the service credits payable for different levels of service failure. Service credits are often calculated based on a percentage of monthly charges and may be subject to an overall limit or cap.
A customer may try to argue that service credits should be offset against its payment obligations under the contract. The net effect of this is that if a customer suffers downtime, the amount owed on the bill will be reduced.
A supplier will often try to offer service credits as a sole and exclusive remedy for a failure to meet the agreed service levels. This means that the customer should review the level of service credits being offered and assess whether they would represent adequate compensation for the unavailability of the service.
Conclusion - Setting the expectation
The SLA sets the expectation for the relationship between the supplier and the customer. Not all SLAs are the same. Customers should read the fine print and ensure they, or their corporate IT team, undertake suitable due diligence and assessment of the SLA for a new cloud service. An SLA that contains the well-defined core criteria of availability, access to customer data and performance and remediation metrics will, over the term of the contract, save the parties money and improve customer satisfaction.