Definition
A contractual commitment about service performance — uptime, response time, resolution time. Common in B2B and managed-service contexts; aligns expectations between provider and client.
Why it matters
An SLA matters to an owner on both sides of a deal: when signing one with a client, it's a promise that can carry penalties if missed, and when buying a service, it's the leverage that holds a vendor accountable to response and uptime commitments. Setting clear, realistic terms prevents the disputes that arise when 'fast' or 'reliable' means different things to each party. The risk is over-promising — committing to response or resolution times the business can't consistently hit — which turns a trust-building document into a source of penalties and strained relationships.