service-level agreement (SLA)

Definition of service-level agreement (SLA) in The Network Encyclopedia.

What is SLA (Service-Level Agreement)?

A contractual agreement between a customer and a service provider that outlines what services will be provided and defines the acceptable range of performance and availability of those services. Service-level agreements (SLAs) also indicate the costs and penalties that will be incurred when performance and availability fall below acceptable levels. SLAs are typically used in contracts with telecommunications service providers who provide WAN links for wide area networks (WANs).