In software services, downtime is not an option and user expectations are sky-high, companies must tread carefully to ensure they not only meet but exceed user standards. Enter two key acronyms that play a pivotal role in this quest for service excellence: SLA (Service Level Agreement) and SLO (Service Level Objective).
| Aspect | SLA (Service Level Agreement) | SLO (Service Level Objective) |
|---|---|---|
| Definition | A contractual agreement between a service provider and its users, outlining promises and commitments regarding specific metrics like availability and responsiveness. | The specific promise or objective within an SLA, defining measurable metrics such as incident response times or system uptime. |
| Purpose | Serves as a binding commitment, providing assurances to users and establishing consequences for non-compliance, often involving financial penalties or service credits. | External focus, emphasizes commitments made to users and the consequences for failing to meet those commitments. |
| Challenges | SLAs can be challenging to measure, report on, and meet, as they may lack granularity and alignment with evolving business priorities. | SLOs may face challenges if they are vague, overly complex, or difficult to measure. The key to success is simplicity, clarity, and relevance. |
| Applicability | Typically agreements between vendors and paying customers, with consequences for non-compliance. | Applies internally to both paid and free services, providing benchmarks for system reliability and performance improvement. |
| Focus | The specific promise or objective within an SLA defines measurable metrics such as incident response times or system uptime. | Internal focus, setting specific goals and objectives to ensure the service lives up to the promises outlined in the SLA. |
| Usage | Primarily for services with paying customers, outlining expectations and responsibilities in a formalized agreement. | Applicable to a broader range of services, both paid and free, guiding internal teams in achieving and maintaining service reliability. |
SLA example
Here is an example of Google’s cloud CDN SLA
SLO example
What is the difference between SLA and SLO software?
SLAs are agreements between a company and its customers. SLOs are internal metrics/goals to achieve process improvements.
