��������Ƶ

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Creating a legally sound software service level agreement (SLA) is imperative for any business providing software services. This document sets out both the customer’s and the provider’s expectations, as well as providing a legal framework for accountability.

An SLA should be comprehensive and tailored to the customer and provider’s needs; it should include provisions on service availability, performance metrics, customer responsibilities, dispute resolution and other key issues. It is also important that it is regularly reviewed and updated in line with applicable laws and regulations.

The ��������Ƶ team understand how crucial an SLA can be when forming a software service contract; without one, both parties are vulnerable to significant risks in regards to their rights and obligations. An SLA ensures that there is no misunderstanding between both parties by clearly setting out what each has agreed to provide or receive. Furthermore, this document affords customers the assurance that they will receive the services they have contracted for while holding the provider accountable if these terms are breached.

��������Ƶ provides free access to its open source template library - containing millions of data points giving insight into how market-standard SLAs look - enabling customers to draft their own agreements with confidence or customise existing ones without having to pay costly legal fees or go through lengthy processes. This step-by-step guide offers invaluable knowledge on how best utilise these templates today - helping customers create legally sound documents suitable for their particular circumstances without needing an account with ��������Ƶ beforehand.

Definitions

Service Level Agreement (SLA): An agreement between a customer and a service provider that outlines the type of services that will be provided, the quality of those services, and the performance standards and objectives that must be met in order to achieve the desired service levels.

Performance Metrics: Measurable standards used to evaluate the performance of services provided.

Quality Levels: Standards used to ensure that services provided are reliable and of the highest quality.

Indemnification: A legal term used to describe an agreement in which a party agrees to protect another party from any losses or liabilities they may incur.

Key Performance Indicators (KPIs): Specific and measurable standards used to measure the performance of services provided.

Contents

1. Defining Service Levels and Performance Metrics
2. Setting expectations for service levels and performance
3. Establishing performance standards and objectives
4. Outlining customer responsibilities
5. Outlining Service Availability
6. Establishing service availability, including details on maintenance and support services
7. Defining timeframes for service availability
8. Specifying the impact of service outages
9. Outlining Customer Responsibilities
10. Defining customer responsibilities, such as providing timely feedback and communicating changes or issues
11. Identifying roles and responsibilities of the customer and the service provider
12. Establishing Acceptable Quality Levels
13. Setting acceptable quality levels
14. Developing metrics to measure quality
15. Defining processes for addressing quality issues
16. Establishing Service Level Agreements (SLAs)
17. Developing SLAs that are specific to the customer’s needs and requirements
18. Setting agreed-upon service levels and performance metrics
19. Outlining performance and accountability for service delivery
20. Legal Considerations
21. Identifying legal considerations, such as warranties and indemnification
22. Designing SLAs accordingly to address any legal considerations
23. Establishing a dispute resolution process
24. Establishing Service Level Reporting
25. Developing a comprehensive service level reporting process
26. Outlining the frequency of reporting
27. Defining procedures for monitoring and evaluating performance
28. Establishing Service Level Escalation Processes
29. Developing an escalation process for addressing service level issues
30. Identifying the individuals responsible for escalating service issues
31. Outlining the procedures for escalating service issues
32. Defining Support Services
33. Establishing procedures for providing support services
34. Identifying the types of support services available
35. Outlining the timeframes for providing support services
36. Establishing Service Level Performance Reviews
37. Developing a process for reviewing and evaluating service levels
38. Outlining the frequency of reviews
39. Identifying key performance indicators (KPIs) to measure performance

Get started

Defining Service Levels and Performance Metrics

• Identify the services that are to be covered by the SLA
• Determine the performance metrics associated with each service
• Establish the service levels for each service and performance metric
• Document the agreed-upon service levels and performance metrics
• Make sure all parties involved agree to the service levels and performance metrics

Once you have identified the services, determined the performance metrics, established the service levels and documented the agreed-upon service levels and performance metrics, you can move on to the next step.

Setting expectations for service levels and performance

• Outline the service-level expectations between the customer and service provider in a written document
• Define specific performance metrics that will be used to ensure that expectations are met
• Identify any penalties that may be incurred if expectations are not met
• Make sure to specify the frequency of monitoring and reporting of performance metrics
• Review the document with both parties and ensure understanding of expectations and performance metrics
• Once both parties have agreed to the document, have it signed and dated to make it a binding agreement
• Check off this step and move on to the next one - Establishing performance standards and objectives.

Establishing performance standards and objectives

• Identify the performance standards and objectives that will be used to measure the quality of the custom software service
• Consider the measurements and metrics that will be used to verify that performance standards and objectives are met
• Create a tracking system to monitor performance standards and objectives
• Confirm with the customer that they agree with the performance standards and objectives
• Document the performance standards and objectives in the SLA

Once all the performance standards and objectives have been identified and documented, you can move on to the next step of outlining customer responsibilities.

Outlining customer responsibilities

• Agree on the customer’s responsibilities in regards to software maintenance and usage
• Establish what the customer is expected to do to maintain the software, such as updating the software regularly, following best practices, and protecting the software from malicious software or acts
• Discuss any additional roles or responsibilities the customer may have in regards to the software, such as training staff or users of the software
• Specify any limitations the customer may have in regards to the software, such as not being able to modify the software without the vendor’s permission
• Confirm the customer understands what is expected of them and agree on the responsibilities and limitations

You can check this off your list when you and the customer have agreed on the customer’s responsibilities in regards to the software.

Outlining Service Availability

• Define the service availability expectations, such as the hours of operation, expected response times, and any other related criteria
• Specify the availability requirements in terms of uptime and any other service-level specifications
• Document any service restrictions, such as regional restrictions, capacity limitations, or other similar issues
• Establish the maximum amount of downtime that is acceptable, including when downtime is considered to be unscheduled
• Describe any planned maintenance or scheduled downtime that will be required for the service
• Determine how service interruptions will be communicated to the customer
• Record any service availability commitments and associated penalties for non-compliance
• When you have outlined all the service availability expectations, check this step off your list and move on to the next step: Establishing service availability, including details on maintenance and support services.

Establishing service availability, including details on maintenance and support services

• Establish the service availability rate, including the hours of operation, frequency of maintenance windows, and how long each service will be available.
• Define the maintenance and support services that will be provided. This can include details on the types of assistance that will be offered, such as remote or on-site assistance.
• Specify the types of maintenance or support services that will be available for the custom software, such as bug fixes or updates.
• Identify any potential downtime or outages, and include information on the duration, frequency, and expected resolution time.

You’ll know that you can check this step off your list when you have a clear understanding of the service availability rate, the maintenance and support services that will be provided, and any potential downtime or outages.

Defining timeframes for service availability

• Establish the hours of operation for the service and document any expected or planned downtime
• Identify the maximum acceptable response time for service requests
• Describe the procedures for extending support hours in the event of an emergency
• Set a timeline for when service requests must be responded to and resolved
• Allocate a dedicated team to provide support within the established timeframes

How you’ll know when you can check this off your list and move on to the next step: Once all of the timeframes for service availability have been established and documented in the SLA, you can move on to the next step of specifying the impact of service outages.

Specifying the impact of service outages

• Define the impact of service outages on customers, including any financial compensation that may be due to customers in the event of a service outage.
• Outline the amount of any compensation that is due and the conditions that must be met in order for it to be paid.
• Agree on the maximum compensation allowed, and ensure that any compensation is consistent with the agreed-upon service levels.
• Document the agreed-upon compensation in the SLA and ensure that both parties sign off on it.
• Once all parties have agreed to the compensation for service outages, this step is complete.

Outlining Customer Responsibilities

• Determine the customer’s responsibilities related to the software service
• Consider responsibilities such as providing timely feedback, communicating changes or issues, and adhering to the service agreement
• Document customer responsibilities, including any required actions or notifications
• Clarify any user responsibilities related to the software service, including support and maintenance obligations
• Outline any customer responsibilities related to data security and protection
• Confirm that customer responsibilities are in line with the service agreement
• When all customer responsibilities have been identified, outlined and agreed upon, you can move on to the next step of defining customer responsibilities, such as providing timely feedback and communicating changes or issues.

Defining customer responsibilities, such as providing timely feedback and communicating changes or issues

• Set expectations for customer communication, such as how often (daily, weekly, etc.) they should provide feedback on the service
• Outline what types of changes or issues the customer should communicate and the expected timeline for doing so
• Specify the channels in which the customer should communicate changes or issues (e.g., phone, email, etc.)
• Define the customer’s role in identifying and resolving any issues that arise

How you’ll know when you can check this off your list and move on to the next step:
Once the customer responsibilities are clearly outlined and communicated, the step can be marked as complete and the next step of identifying roles and responsibilities of the customer and the service provider can be addressed.

Identifying roles and responsibilities of the customer and the service provider

• Identify which roles are necessary for the customer and the service provider to ensure that the SLA is successful.
• Establish the roles and responsibilities of each party in the SLA.
• Make sure that the roles and responsibilities of each party are clearly defined and documented.
• Agree to the roles and responsibilities of each party.
• Assign someone to be responsible for the SLA and its implementation.
• Monitor and review the roles and responsibilities of each party to ensure they are being followed.

Once all the roles and responsibilities of the customer and the service provider have been identified, agreed upon, and documented, you can move on to the next step of establishing acceptable quality levels in the SLA.

Establishing Acceptable Quality Levels

• Outline the criteria used to measure the quality of the service
• Specify the criteria for the quality of customer service, the customer’s technical requirements, and the service provider’s technical responsibilities
• Identify the acceptable response times to inquiries and the expected resolution times of any issues
• Discuss the acceptable downtime for the service
• Establish a customer satisfaction survey to review the quality of the service

When you have outlined the criteria used to measure the quality of the service, specified the criteria for the quality of customer service, the customer’s technical requirements, and the service provider’s technical responsibilities, identified the acceptable response times to inquiries and the expected resolution times of any issues, discussed the acceptable downtime for the service, and established a customer satisfaction survey to review the quality of the service, you can check this off your list and move on to the next step.

Setting acceptable quality levels

• Clarify which software services are included in the agreement and the quality levels that are expected for each service
• Identify and document the acceptable levels of quality for each service, including uptime, response times, scalability, security, and reliability
• Review and refine the quality standards with stakeholders and other team members involved in the agreement
• Establish a timeline for meeting the quality standards
• When all stakeholders agree on the quality standards, document the standards in the agreement
• Check off this step when the quality standards are documented in the agreement.

Developing metrics to measure quality

• Define the criteria that are necessary to measure the quality of the service
• Establish criteria for each metric that will be used to determine the levels of quality of the service
• Identify any variables that need to be considered in the measuring of the quality of the service
• Identify any external factors that could negatively or positively impact the quality of the service
• Develop a set of metrics that can be used to measure the quality of the service
• Evaluate the metrics for accuracy and reliability
• Once the metrics have been established and vetted, create a plan for tracking and measuring the quality of the service

When you can check this off your list:

• Once you have met the criteria for each metric, established the metrics for measuring quality, and developed a plan for tracking and measuring the quality of the service, you can check this step off your list and move on to the next step.

Defining processes for addressing quality issues

• Identify processes that can be used to address ongoing quality assurance issues
• Establish a framework for addressing and resolving any quality assurance issues that arise
• Develop a process for addressing customer complaints related to quality
• Determine an acceptable timeline for addressing and resolving any quality issues
• Create a process for ensuring that quality issues are addressed without impacting other stakeholders
• Once processes for addressing quality issues have been established, document them in the SLA
• When the processes for addressing quality issues have been documented, this step is complete and ready to move on to the next step.

Establishing Service Level Agreements (SLAs)

• Set a timeline of when the SLA will begin and end
• Define the scope and terms of the service provided
• List the goals, roles, and expectations of both parties
• Outline the metrics used to measure the service performance
• Determine the response times and resolution times for service requests
• Specify the process for making changes to the agreement
• Include any penalties or credits for service outages
• Determine the process for dispute resolution

When you can check this off your list and move on to the next step:
Once you have established the SLAs and have documented them in a written agreement, you can move on to the next step of developing SLAs that are specific to the customer’s needs and requirements.

Developing SLAs that are specific to the customer’s needs and requirements

• Identify and document the customer’s individual needs and requirements
• Analyze the customer’s requirements and use them to develop the SLA
• Create a scope of services and the associated performance levels
• Ensure that the SLA is flexible and can be adapted to changing customer needs
• Have the customer review and sign off on the SLA
• Document any changes that are made to the SLA
• Ensure that the SLA is comprehensive and covers all relevant topics

You will know that you can move on to the next step when the customer has signed off on the SLA and any changes have been documented.

Setting agreed-upon service levels and performance metrics

• Define the service levels that will be provided and agreed to by both the customer and the service provider.
• Establish measurable performance metrics that will be used to measure the customer’s satisfaction with the service.
• Consider including metrics such as response times, uptime, and system availability.
• Make sure the metrics are measurable and achievable.
• Agree on performance goals that will be used to measure customer satisfaction.
• Document the agreed-upon service levels and performance metrics in the SLA.
• Once the service levels and performance metrics have been established and documented, you can move on to the next step: outlining performance and accountability for service delivery.

Outlining performance and accountability for service delivery

• Establish clear and measurable performance metrics
• Identify who is accountable and responsible for service delivery
• Include any service credits, financial penalties, and other remedies that will apply when service levels are not met
• Specify the roles, responsibilities, and obligations of both parties
• Include a dispute resolution process
• Identify who will manage and monitor service levels

Once all of the above have been included in the service level agreement, you can move on to the next step.

Legal Considerations

• Research and understand the legal implications associated with your SLA, such as warranties and indemnification
• Outline the applicable legal terms, such as applicable laws, jurisdiction, and dispute resolution
• Include a clause that outlines any restrictions or limitations of liability
• Include provisions for intellectual property rights and confidentiality
• Address any applicable taxes, fees, or other costs
• Once you have outlined all applicable legal considerations, review the agreement for accuracy and consistency
• Make sure all parties involved have signed and agreed to the document

Once these steps are completed, you will have a comprehensive and legally binding Software Service Level Agreement in place.

Identifying legal considerations, such as warranties and indemnification

• Read through any existing legal documents related to the software, such as the Terms of Service and End User License Agreement, to understand the scope of warranties and indemnifications already in place
• Research any applicable laws or regulations that could affect the warranties and indemnifications in the SLA
• Identify any additional warranties or indemnifications that should be included in the SLA to ensure appropriate legal protection
• Draft the relevant warranties and indemnifications into the SLA, ensuring they are clear and concise

You can check this step off your list when you have a clear understanding of the existing warranties and indemnifications, identified any additional warranties or indemnifications needed, and drafted them into the SLA.

Designing SLAs accordingly to address any legal considerations

• Consider the limitations and warranties of the software
• State what the software will do and what it won’t do
• Define the duration, scope and terms of the service agreement
• Ensure the SLA outlines any actions that may be taken if the software fails to meet the service level
• Outline any responsibilities for the customer or vendor
• Include the details of any indemnification clauses
• Once all considerations have been addressed, the SLA can be completed
• Upon completion, the SLA should be signed by both parties and dated

Establishing a dispute resolution process

• Consult with the software service provider and legal counsel to determine the best way to handle any dispute resolution
• Agree upon a method to settle disputes that is fair to both parties and legally binding
• Make sure the dispute resolution process is clearly outlined in the SLA document
• Agree upon a timeline for resolving disputes, and document this in the SLA
• Once all parties have agreed upon a dispute resolution process, it should be included in the SLA and signed by both parties

When you can check this off your list:

• You have consulted with the software service provider and legal counsel
• You have agreed upon a method to settle disputes that is fair to both parties and legally binding
• You have outlined the dispute resolution process in the SLA document
• You have agreed upon a timeline for resolving disputes and documented this in the SLA
• Both parties have signed the SLA document with the dispute resolution process included.

Establishing Service Level Reporting

• Determine the metrics to be used for service level reports
• Create a process for capturing and recording service level metrics
• Define how frequently reports will be generated
• Establish a timeline for when service level reports will be delivered
• Determine what reporting format should be used
• Establish who will be responsible for generating the reports
• Set up a system to ensure reports are delivered on time
• When you have established the reporting process and have a system in place to generate the reports, you can move on to the next step.

Developing a comprehensive service level reporting process

• Set up and define the reporting process:
• Describe the reporting process from start to finish
• Identify which team members will be responsible for the reporting process
• Define the frequency of reporting, the format of the report and how it will be delivered
• Develop a reporting template for tracking service level performance:
• Define the necessary data to be tracked, such as service levels, response times, etc.
• Determine which metrics should be included in the report
• Create a template to capture the necessary data and metrics
• Test the reporting process:
• Test the reporting process to ensure it is capturing the necessary data and metrics
• Make sure the reporting process is running smoothly and accurately
• Automate or outsource the reporting process if possible:
• Consider automating or outsourcing the reporting process to ensure accuracy and efficiency
• When all the above items have been completed, the comprehensive service level reporting process will be ready to be implemented.

Outlining the frequency of reporting

• Establish the frequency at which you will report on the service level agreement metrics
• Set the frequency to align with the needs of your customers and the demands of the software service
• Decide on how often you will report on the service level agreement metrics, such as once a month, quarterly, or annually
• Document the frequency of reporting in the service level agreement
• Once the frequency of reporting is outlined and documented, you can move on to the next step of defining procedures for monitoring and evaluating performance.

Defining procedures for monitoring and evaluating performance

• Establish what metrics will be used to measure performance of the custom software service
• Determine how those metrics will be collected, analyzed, and presented in reports
• Consider the best method for recording and storing the performance data for review
• Set up procedures for regularly monitoring the performance of the custom software service
• Create benchmarks for measuring success of the custom software service
• Outline a process for evaluating the performance of the custom software service and identify areas for improvement

Once the procedures for monitoring and evaluating have been defined, you can move on to the next step, which is establishing service level escalation processes.

Establishing Service Level Escalation Processes

• Determine the escalation process for addressing service level issues
• Establish a timeline for escalations to take place
• Identify the individuals and/or teams responsible for escalating service level issues
• Develop a communication plan to ensure team members and stakeholders are aware of any escalations
• Develop a process for addressing escalations and determining appropriate solutions
• Verify that all stakeholders are aware of, and agree to, the escalation process.

Once all of the above is established, you can check this step off your list and move on to the next step, which is developing an escalation process for addressing service level issues.

Developing an escalation process for addressing service level issues

• Create a process to identify the severity of service issues, and define expectations for when the issue should be escalated
• Define the steps for escalating service issues to the appropriate individuals or teams
• Establish a timeline for addressing escalated service issues
• Document the escalation process and timeline, and ensure stakeholders are aware of them
• Test the escalation process to ensure it works as intended

Once the escalation process has been developed and tested, you can move on to the next step of identifying the individuals responsible for escalating service issues.

Identifying the individuals responsible for escalating service issues

• Create a list of individuals with the necessary skills to help resolve service issues.
• Document the roles and responsibilities of each individual.
• Ensure that each individual is easily contactable and has the authority to take the necessary steps to resolve service issues.
• Create a system for notifying the relevant individuals when service issues arise.
• Check that the list of individuals is up-to-date and that each individual is available and willing to help when service issues occur.
• Once the list is complete, the step is complete and you can move on to the next step.

Outlining the procedures for escalating service issues

• Establish a process for escalating service issues and determine how quickly each issue needs to be addressed
• Identify the individual responsible for escalating service issues and assign them the appropriate roles and responsibilities
• Establish a timeline for each step of the escalation process, including the expected resolution time
• Develop a clear system of communication for escalating service issues, such as email, telephone, or chat
• Determine the criteria for determining when an escalation is necessary, such as response time or severity of the issue
• Establish the procedures for escalating service issues to the appropriate personnel or departments
• Test the process to ensure that it is working properly

Check-off list for this step:

• Established a process for escalating service issues
• Identified individual responsible for escalating service issues
• Established timeline for each step of the escalation process
• Developed a clear system of communication
• Determined criteria for determining when an escalation is necessary
• Established procedures for escalating service issues
• Tested the process to ensure it is working properly

Defining Support Services

• Identify the type of services that will be offered, such as software installation, maintenance, and upgrades
• Define the scope of services, including the hardware and software supported
• Establish the level of support, such as the response time, availability, and resolution time
• Detail the service expectations in terms of communication and response times
• Outline the procedures for escalating service issues
• Describe the processes and methods used to provide support services
• Establish any additional services that may be offered, such as on-site support

You can check this step off your list when you have defined all of the services that will be offered, established the level of support, and outlined the procedures for escalating service issues.

Establishing procedures for providing support services

• Work with stakeholders to document the details of how the support services will be provided
• Create a support services policy that outlines how requests for support services will be handled by both the client and the service provider
• Document the response times and escalation processes that will be used to ensure the timely resolution of support requests
• Determine if any additional staff or resources will be needed to provide the support services
• Create a timeline for implementation and address any potential challenges
• Document the procedures for providing support services in the service level agreement
• Test and review the procedures for providing support services to ensure they are effective
• Once the procedures for providing support services have been established and reviewed, the step is complete.

Identifying the types of support services available

• Identify the types of support services that should be included in the SLA.
• Consider the scope of services you will be providing and make a list of support services you are able to offer.
• Make sure the list of services is comprehensive and covers all the areas that a customer might need assistance with.
• Once you have identified the types of support services, create a description for each service that explains what it includes.
• When you are done, review the list to make sure it is accurate and comprehensive.

Once you have completed this step, you can check it off your list and move on to the next step which is outlining the timeframes for providing support services.

Outlining the timeframes for providing support services

• Determine the hours and days of the week when support services will be available
• Determine the response time frames for various types of issues
• Set benchmarks for resolution time for various types of issues
• Determine the response times for customer inquiries
• Document all timeframes and response times
• Make the SLA available to customers

You will know when you can check this off your list and move on to the next step when all timeframes and response times have been set and documented in the SLA.

Establishing Service Level Performance Reviews

• Schedule regular performance reviews to assess the effectiveness of the agreement
• Set specific review periods for the agreement, such as quarterly or annually
• Assign a person or team to manage the review process
• Establish criteria for measuring the performance of the agreement, such as response times and success rates
• Collect data and feedback from customers and other stakeholders on the effectiveness of the agreement
• Identify areas for improvement and make changes to the agreement as necessary
• When all the above steps are complete, the service level performance review is complete and you can move on to the next step.

Developing a process for reviewing and evaluating service levels

• Determine the criteria for measuring service levels, such as uptime, response time and resolution time
• Define the metrics for collecting and evaluating service level performance
• Establish a timeline for service level reviews and performance evaluations
• Decide who is responsible for conducting the reviews and evaluations, and who is responsible for taking corrective action
• Set up a process for documenting and tracking any improvements or changes to the service level agreement
• Ensure the process for measuring and evaluating service levels is communicated to all stakeholders

Once the process for reviewing and evaluating service levels has been established, you can move on to outlining the frequency of reviews.

Outlining the frequency of reviews

• Decide on how often service levels should be reviewed.
• This could be done monthly, quarterly or annually depending on your specific needs.
• Make sure that the frequency of reviews reflects the type of services you are offering.
• Set a timeline for when reviews will occur and stick to it.
• Once you have determined the frequency of reviews, you can move on to the next step.

Identifying key performance indicators (KPIs) to measure performance

• Research best practices to identify suitable KPIs for the particular software service you are trying to measure
• Identify KPIs that will measure the performance of the software service, such as availability, response time, uptime, etc.
• Determine the metrics that will measure the success of the KPIs
• Establish the baselines and targets of the key performance indicators
• Once you have identified and established the KPIs, you can move on to the next step of outlining the frequency of reviews.

FAQ

Q: How does a Software Service Level Agreement (SLA) differ from an End User License Agreement (EULA)?

Asked by Emma on June 2nd 2022.
A: A Software Service Level Agreement (SLA) is a contract between two parties, often a customer and service provider, which outlines the specific services to be provided and the responsibilities of both parties. It is generally used to define the level of service expected by the customer and the corresponding obligations of the service provider. On the other hand, an End User License Agreement (EULA) is a legal contract between the customer and software provider which outlines the terms and conditions of using the software. It typically covers topics such as license, ownership, usage rights and copyright protection.

Q: What factors should be considered when creating a custom Software Service Level Agreement?

Asked by Henry on July 1st 2022.
A: When creating a custom Software Service Level Agreement, there are many factors to consider. Firstly, you should understand your own business needs and what services you are expecting from your service provider. You should also be aware of any industry or sector specific regulations or laws that may impact the agreement. Additionally, it is important to consider topics such as warranties, maintenance and support obligations, intellectual property rights and dispute resolution clauses. Lastly, it is important to ensure that all parties involved understand the agreement and agree to its terms before signing it.

Q: What legal implications does a Software Service Level Agreement have for UK businesses?

Asked by Owen on August 5th 2022.
A: For UK businesses, it is important to ensure that any Software Service Level Agreement (SLA) complies with relevant UK laws and regulations. In particular, SLAs should not contain any clauses which could be interpreted as being in breach of the Consumer Rights Act 2015 or any other applicable laws related to contracts or services. Additionally, businesses should ensure that they have appropriate procedures in place for dealing with any disputes which may arise from the agreement.

Q: Are there any special considerations for companies operating in a SaaS model?

Asked by Mia on September 10th 2022.
A: Yes, there are certain considerations for companies operating in a SaaS model when creating a custom Software Service Level Agreement (SLA). Firstly, it is important to ensure that the agreement includes provisions for all software components which are accessed or delivered through the SaaS platform. This includes third party applications which may be integrated with your platform as well as any additional services offered through the platform such as data storage or analytics tools. Additionally, it is important to include clear definitions of what constitutes acceptable use of your platform and how you will handle any misuse or abuse of your services.

Q: How can I ensure my custom Software Service Level Agreement covers all eventualities?

Asked by John on October 15th 2022.
A: To ensure that your custom Software Service Level Agreement covers all eventualities, it is important to take a comprehensive approach when drafting the agreement. Firstly, you should consider all relevant industry regulations and laws which may impact your agreement as well as any specific needs your business may have when it comes to service delivery. Additionally, you should consider features such as warranties and dispute resolution clauses which can provide additional protection in case of any problems arising from your agreement. Finally, you should consult with experienced legal professionals who can help you ensure that all aspects of your agreement are covered and legally compliant before signing it.

Example dispute

Suing a Software Service Provider:

• A plaintiff might raise a lawsuit if the software service provider failed to meet the requirements of the service level agreement.
• The plaintiff could cite the service level agreement that was breached and cite any damages that were incurred as a result.
• The plaintiff could seek damages for any losses due to the breach, including lost profits, lost opportunities, and other direct costs associated with the breach.
• The plaintiff could also seek punitive damages if it can be proven that the breach was intentional or negligent.
• If the breach of the service level agreement is found to be valid, the court could order the software service provider to pay any damages that are determined by the court, or to modify the service level agreement to ensure that the requirements are met in the future.

Templates available (free to use)

Software Service Level Agreement

‍