What is a Service-Level Agreement (SLA)?

A Service-Level Agreement (SLA) is a formal agreement between service providers and recipients that outlines the expected level of service. It typically specifies key performance indicators (KPIs), such as uptime guarantees, response times, and support availability, ensuring both parties have clear expectations. An SLA serves as a binding contract and helps to establish accountability, as well as providing a framework for measurement and evaluation of the service provided. This formalized approach helps prevent misunderstandings and establishes a clear path for recourse if the terms are not met, thereby fostering trust in the business relationship.

In contrast, the other choices do not accurately capture the essence of an SLA. For instance, SLAs are not merely guidelines for cloud pricing, nor are they informal agreements or documents primarily focused on risk analysis. Instead, they are well-defined, formalized agreements that serve as crucial tools in managing and assuring service quality and performance.