SLA is the abbreviation for a service legal agreement. It is not a Software License but an agreement that sets out the SaaS services provided in addition to the right to use the SaaS software. It forms part of a SaaS agreement, can be included in the main terms and conditions or in a separate annex of the contract. It sets out the following:

  1. Details about the availability of the software and services
  2. Technical details about hosting
  3. Details about support and maintenance services for the software.

It is better for SaaS suppliers to provide their own SLA as customers try to impose their own, which will never fit the requirements and the service provided by the SaaS supplier.

It is advisable for a SaaS supplier to provide a certain level of detail in the agreement in order to avoid unnecessary time when negotiating the terms and conditions requested by the customers. Details can include: payment details – how much a customer pays for the SaaS software and services, what is the standard in the particular business sector or whether the software is business critical regarding for ex. online banking.

SLA’s provisions:

  • Guaranteed availability of the services and software
  • Guaranteed availability of the services and software
  • Timing of and prior notice of maintenance
  • Description of the security provisions at the hosting centre and the technical infrastructure
  • Problem response and resolution times
  • Customer  support description and support hours
  • Provision of service availability reports
  • Backup of customer data
  • Security and disaster recovery provisions
  • Right to terminate for breaches of the SLA
  • Service credits for breaches of the SLA