Have you ever wondered what should actually be included in a service level agreement?

Content

Customers thinking of purchasing SaaS software applications – software delivered via the Internet are often unaware of what terms should be included.  Jargon in the SLA can seem like a foreign language. Customers will often try to rewrite the SLA provided by the supplier, rather than struggle to understand its terms.

Review

Most customers no longer simply accept the supplier’s  SLA. They will review the content, or have it reviewed by a legal expert. This can make the process painful and time consuming, as you will need to deal with numerous queries. It is therefore advisable to provide more  detail  in your SLAs now and this will leave you with more time to focus on your core business.

Minimum Requirements

SLAs should generally contain the following provisions, where appropriate:

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

Commercial Considerations

The degree of detail that you give to to SaaS customers in your SLA will depend upon:

  • how much a customer pays for the SaaS solution and services;
  • whether the SaaS application is business critical i.e. online banking;
  • what is standard in that particular business area.

Help

If you need assistance with SLAs or any other IT legal issues contact:

irene.bodle@bodlelaw.com
www.bodlelaw.com

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