The formal agreement established between a web hosting provider and a customer is known as the Service Level Agreement (abbreviated as SLA). This complex written document is a virtual contract; it may or may not be legally binding. The agreement clearly defines the parameters and expectations between the customer and the provider. Virtually all ISPs (Internet service providers) offer a public Service Level Agreement to customers. In imitation, the IT departments of some large enterprises have published service level agreements to the users of all departments.
The Service Level Agreement will enumerate and define every service to be provided as well as the level of service (in numerical terms). Additional clauses will address outage penalties/reimbursement, support options, customer duties, disaster recovery, performance metrics, failure management, dispute resolution and termination of the agreement according to the website WebHostingBuddy. If you’re interested in this particular aspect of SLAs for nonprofits, you can read more here.
Web hosting providers typically offer a money-back guarantee to clients. Another important promise is the uptime guarantee. Such guarantees are part of the Terms of Service (TOS).
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The Service Level Agreement may also mention exact metrics including: service uptime or availability; hardware uptime (including power and HVAC); maximum simultaneous users; disk and/or network IO benchmarks; notification window for service changes or interruptions; response time of support staff.
Some providers will credit the customer’s account a certain percentage of the regular monthly fee for each minute of downtime — potentially waiving the fee in case of significant downtime. This is specified in the SLA.