Overview of SLA

Overview of SLA in Cloud Computing.

How does SLA work?

• A Service Level Agreement (SLA) serves as a guarantee for the fulfillment of the agreement between a client and a cloud service provider. 
• Previously, all service level agreements for cloud computing were negotiated between a customer and a service consumer. 
• Most service level agreements are standardized as a result of the development of major utilities, such as cloud computing providers, up until a client becomes a significant user of cloud services. 
• Additionally, service level agreements are defined at various levels, as follows:

1. Customer-based SLA.
2. Service-based SLA.
3. Multilevel SLA.

• Few service level agreements are legally binding, but the majority of them are agreements or contracts that resemble operating level agreements (OLAs) and may not be subject to legal restrictions. 
• Before entering into a significant deal with the cloud service provider, it is acceptable to have an attorney check the documentation. 
• Service Level Agreements often include the following parameters:

1. Availability of the Service (up-time).
2. Latency or the response time.
3. Service components reliability.
4. Each party accountability.
5. Warranties.

• A cloud service provider will be required to pay a fine to the cloud service consumer in accordance with the agreement if they fall short of the minimum targets. 
• Therefore, service level agreements are similar to insurance policies in which the company is required to pay as agreed upon in the event of an accident.