SaaS & Startupadvanced
SLA
Service Level Agreement
Definition
A contract defining the level of service expected between a provider and a client, including uptime guarantees, response times, and remedies for failures.
Why it matters
SLAs build customer confidence in your reliability. For SaaS businesses, uptime SLAs are a competitive differentiator. Failing to meet them can trigger financial penalties.
Example
A SaaS company offers a 99.9% uptime SLA. If uptime drops below that, customers receive credit on their next invoice.
Related terms
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