Service Level Agreement

Why SLA Agreements Are Smart For Business

Colocation providers refer to data center companies, cloud computing providers, or Internet service providers who provide businesses data solutions that are usually hosted in colocation facilities. Colocation providers eliminate the need for businesses to set up secure data storage facilities that require a sizable running cost.

Colocation providers give businesses the option to keep their data secure and to store it in their facilities for a low cost. If a company employs external colocation services, then they won’t have to set up a data storage facility which would require electricity, internet connection, air conditioners to keep the equipment cool, space to keep the equipment, and resources (a team) to monitor, save and protect the data. Also, colocation data centers sometimes provide cloud computing services and access to multiple Tier 1 Internet backbones, as they are located near Internet connecting points.

What’s an SLA Agreement?


Colocation data center companies and their clients need to draw up a service level agreement (SLA) to highlight the main type of services that will be provided, the terms of the agreement, information about percentage uptime, data monitoring and reporting guidelines, restraints, and escape clauses so no party can take unfair advantage. This agreement is drawn as per the instructions of both the provider and the client.

What Should an SLA Agreement Include?


The main points that are covered in an SLA, which the clients should know about before agreeing to, are:

  • Volume and quality of work
  • Guarantees
  • Speed
  • Efficiency
  • What the facility will be responsible for
  • Warranties
  • Response time

How Does an SLA Agreement Protect You?


The primary requirement for a business seeking the services of a colocation provider is that they keep the companies data safe and accessible. Safety here is the number one priority, and the SLA exhibits how the provider aims to keep your data free of breaches. If a provider isn’t providing your data enough security or hasn’t specified the uptime percentage or maintenance guidelines, then it is better to opt for a different colocation provider.