What is a cloud service level agreement (SLA)?

A cloud service level agreement (SLA) is fundamentally a documented agreement between a service provider and a customer that outlines the expected level of service. This agreement typically includes specific metrics such as availability, performance benchmarks, and responsibilities of both parties. An SLA serves to establish clear expectations regarding the quality and reliability of the services provided, thereby enabling the customer to understand what to expect and what recourse they may have if the agreed-upon service levels are not met.

By defining measurable criteria, the SLA provides a framework for accountability that fosters trust in the provider's capabilities. For instance, it may specify uptime guarantees, response times for support requests, and the process for handling service disruptions. This level of detail is critical for customers when selecting a cloud service provider, as it gives them confidence that their business needs will be adequately supported.

In contrast, the other options do not directly define what an SLA is. Financial plans for cloud services focus on pricing and budgets rather than service quality. Guidelines for data storage methods pertain to the technical practices for managing data rather than service expectations. Methods for data encryption are concerned with security protocols rather than service agreements. These distinctions clarify why the correct choice relates specifically to the service expectations between a provider and a customer.