sla: service level agreementA ‘Service Level Agreement,’ commonly referred to by its acronym SLA, is an understanding of service between two parties and is specific to the performance level or scope of service that will be provided.

A web hosting service level agreement will specify what kind of guarantees or warranties the service provider shall provide the hosting account under.

It will also provide what action can or will be taken if the service provider fails to meet the specified scope.

Web Hosting SLAs

In the web world, an SLA is a common term when talking about web hosting. Though SLAs can get very complex, the simplest models include specifics of a refund of monthly fees if an uptime guarantee is failed to be met. It’s a service contract with payback if the terms are not met.

SLA GuarunteeHow Web Hosting SLAs Work

For example, if the service level agreement states the hosting provider will provide 99.99 percent uptime and there is an outage lasting longer than approximately 4.3 minutes in a 30-day period, the provider would then refund some of the customer’s money.

The Details

Some SLAs measure in 24 hours or weeks, though the monthly agreement is the most common in the web hosting industry.

An SLA may not just refer to server uptime/server downtime; it can and often refers to technical support response time.

There may also be exceptions in the terms and conditions for scheduled maintenance, hardware failure, and changes made to websites or servers by the customer. Consider these a “limitation to warranty.”

Understanding a Web Hosting SLA

You must understand your hosting service level agreement and exactly what it means.

Marketing Tactic or Worthwhile

Refund from SLAMany vendors provide their customers with an SLA as a guarantee to make them feel better during the purchasing decision – i.e.; it’s a marketing tool.

However, it’s typically not as simple as “if your site goes down, we give your money back.”

The typical web hosting SLA compensates the customer for an amount equal to the time their service was not provided (outage). An example:

Host Guarantee: 99.99% Uptime (no more than 4.3 minutes of downtime in 30 days)

Actual Outage: 60 minutes

Time Outside SLA: 57.3 minutes

Your Hosting Fee: $200/month

Refund provided by SLA: $0.30 (rounded up)

You can see that downtime will quickly surpass what is reasonable for your business long before the managed hosting SLA provides you any real financial satisfaction.

I often advise my clients that SLAs are certainly something you want to research and understand when you are hosting some real infrastructure; otherwise, for small infrastructure or shared plans, it’s just not going to matter from a business perspective.

A Web Hosting SLA Won’t cover many Website Outages

what is not covered by an slaWhen it comes to hosting, an SLA will typically cover connectivity and not your specific site or application performance.

Basically, it means that the hosting company’s connection(s) to the internet, the internal network, and the server are up and running (or at least as much as they guarantee).

Notice I said nothing about the performance of your website. If your website’s performance should drop and/or the site even is offline, unless it is a DIRECT result of the host’s network connectivity (not your code, not the web server, or any other reason), then it is probably not covered by the SLA.

How We Deal With Web Hosting Service Level Agreements

We don’t… OK, that is not entirely true.

We Often Maintain SLAs with Our Infrastructure Providers

FatLab often maintains SLAs with many of our service providers; these, however, are exclusive to our relationship with these partners and not passed on to our clients.

These SLAs Are Not Passed to the Client

For our hosting clients, we provide a “best-effort” guarantee. If you have an issue with your site and we can not resolve it in a reasonable amount of time, we will move the affected website to a new infrastructure.

A Web Hosting Server Level Agreement Does Not Make Sense for Our Clients

Pennies in SLA RefundsLooking at my example above, you can see the refund programs don’t make much sense.

  1. It would raise our costs to put a true SLA monitoring program in place (this would raise our prices).
  2. Even if we were refunded 100% of a client’s hosting fees, our client base would still be more worried about downtime.

I think it is a waste of time to fight over how many pennies or even dollars are owed for a little bit of downtime.

Instead of accounting each month for pennies owed, we will do everything in our power to provide the best infrastructure available and rectify any situation that may arise as quickly as possible.

When SLAs in Hosting Services Make Sense

Direct service level agreements make sense if you spend thousands of dollars monthly on infrastructure costs.

However, for smaller deals, the financial benefit does not matter as much as the peace of mind of knowing someone will fix it and fix it as soon as possible.