A Service Level Agreement (SLA) is a formal negotiated agreement between two parties specifying the characteristics of a service. It is a contract that exists between customers and their service provider, or between service providers. It records the common understanding about services, priorities, responsibilities, guarantee, etc. with the main purpose to agree on the level of service. For example, it may specify the levels of availability, serviceability, performance, operation or other attributes of the service like billing and even performance incentives and/or penalties when certain service level thresholds are crossed.
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