UK’s trusted IT infrastructure partner since 2003
Servnet
ConfiguratorGet in Touch
What is an SLA (service level agreement), and what should be in yours? — networkWhat is an SLA (service level agreement), and what should be in yours? — reach
IT Guidance

What is an SLA (service level agreement), and what should be in yours?

Tom Beaumont · Service Delivery Manager8 min read

An SLA - service level agreement - is the part of a contract that puts numbers on a promise. Instead of a supplier vaguely agreeing to 'fix things quickly', an SLA says exactly how quickly, how often the service will be available, and what happens if they miss. For any UK business paying for IT support, broadband, hosting or cloud, the SLA is where the marketing stops and the actual commitment begins. It pays to read it.

What "nines" of uptime really cost you
99%99.9%99.99%Downtime / year3.65 days8.8 hours52 minsDowntime / month7.2 hours43 mins4.3 minsRelative costLowestHigherHighestTypical fitNon-criticalMost businessMission-critical

What an SLA really is

Strip away the formality and an SLA is a measurable promise. It turns soft assurances into hard, checkable numbers - the things you can hold a supplier to when something goes wrong.

It sits inside a wider contract but does a specific job: defining the level of service you are buying, in terms both sides can measure. 'We'll sort it' is a sentiment. 'A priority-one fault will get a response within 30 minutes and a fix target of 4 hours' is a service level agreement.

The numbers that actually matter

Most of an SLA's value is in a handful of figures. Learn these and you can read almost any IT contract with a clear eye.

  • Uptime / availability: the percentage of time a service is up, often shown as 'nines' - 99.9% sounds tiny but allows nearly nine hours of downtime a year.
  • Response time: how fast the supplier acknowledges a problem (note: not how fast they fix it - an easy thing to confuse).
  • Resolution / fix time: the target for actually solving it, usually banded by how serious the fault is.
  • Priority levels: how issues are graded, from 'whole business down' to 'minor query', each with its own targets.
  • Service credits: the money back or compensation you receive if the supplier breaches the agreed levels.

Decoding "nines" of uptime

Uptime percentages are where buyers most often fool themselves. The gap between 99% and 99.9% looks trivial on paper and is enormous in practice, so it is worth translating the marketing into real hours.

99% availability permits around 3.65 days of downtime a year. 99.9% (three nines) allows about 8.8 hours. 99.99% (four nines) allows roughly 52 minutes. Each extra nine costs significantly more to deliver, so the question is never 'how many nines can I get' but 'how much downtime can my business actually tolerate' - and you should not pay for five nines to run a service that could happily survive an afternoon offline.

Response time versus resolution time

This single distinction catches out more buyers than any other, and unscrupulous suppliers know it. A fast response time is easy to promise and means very little on its own.

Response time is how quickly someone acknowledges your ticket. Resolution time is how quickly the problem is actually fixed. A supplier can boast a '15-minute response' and still leave you down for two days, because the response clock stops the moment they reply 'we're looking into it'. Always check both - and check whether the resolution figure is a firm commitment or merely a 'target' (a softer word that carries no penalty).

What a fair IT support SLA contains
4Priority levelsP1 down to minor - with examples3Response targetstime to acknowledge each priority2Resolution targetstime to actually fix - commitment1Service creditsmoney back if levels are breached

What a good IT support SLA contains

For day-to-day IT support specifically, a fair SLA spells out the things you will care about at 9am on a bad Monday. If they are vague or missing, ask before you sign.

Look for clearly defined priority levels with examples, separate response and fix targets for each, the support hours actually covered (and whether 24/7 costs extra), how to log an issue and what counts as a P1 emergency, plus what is excluded. The strongest agreements also state service credits, so a breach has real consequences rather than just an apology. This is the backbone of any credible managed IT service, and it sits alongside related promises in areas like incident response and managed detection and response, where speed of reaction is the whole point.

Questions to ask before you sign

An SLA is only as good as your willingness to test it before committing. A reputable supplier will welcome these questions; a cagey answer tells you plenty.

Ask: are these resolution figures commitments or 'targets'? What are the service credits if you miss? Are support hours business-only or round the clock? How are priorities decided - and who decides? And crucially, how is performance reported back to me, so I can actually see whether the SLA is being honoured? Strong SLAs matter most where downtime hurts most, which is why they go hand in hand with a solid backup strategy and a clear plan for backup and disaster recovery - the SLA covers the supplier's response, your backups cover everything else.

Key takeaways
  • An SLA turns vague promises into measurable numbers: uptime, response time, fix time and what happens on a breach.
  • Uptime 'nines' matter hugely - 99% allows 3.65 days of downtime a year; 99.9% allows under 9 hours.
  • Response time (acknowledgement) and resolution time (actual fix) are different - always check both.
  • A 'target' is softer than a 'commitment'; service credits are what give an SLA real teeth.
  • Match the service level to how much downtime your business can genuinely tolerate - do not overpay for nines.
Frequently asked

FAQs — What is an SLA (service level agreement), and what should be in yours?

Reading an SLA

What does 99.9% uptime actually mean in real time?

It means a service can be down for about 8.8 hours across a whole year and still meet the promise. The jump to 99.99% cuts that to roughly 52 minutes, but costs far more to deliver. The right level depends on how long your business can genuinely tolerate being offline.

What's the difference between response time and resolution time?

Response time is how quickly the supplier acknowledges your issue; resolution time is how quickly they actually fix it. A '15-minute response' can still mean a two-day outage, because the response clock stops the moment they reply. Always check both figures separately.

Is a 'target' the same as a guarantee in an SLA?

No, and the wording is deliberate. A 'commitment' or 'guarantee' usually carries a penalty if missed; a 'target' often carries none. If resolution times are described as targets, ask what actually happens when they are breached - the honest answer reveals how much the SLA is really worth.

Getting a fair deal

What are service credits?

Service credits are the compensation - usually money back or account credit - you receive when a supplier breaches the agreed levels. They are what give an SLA teeth: without them, a breach earns you only an apology. Check how they are calculated and whether you have to claim them or they apply automatically.

What questions should I ask before signing an IT support SLA?

Ask whether resolution figures are commitments or targets, what the service credits are, whether support hours are business-only or 24/7, how priorities are decided, and crucially how performance is reported back to you. A supplier confident in their service will answer all of these plainly.

Related

Continue reading

More in IT Guidance

Got a question this article didn't answer?

One conversation with an engineer who's done this before. No sales script.

Talk to Servnet →