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a service level agreement or SLA for short is a crucial part of business relationships in the software as a service space and elsewhere but what is an SLA why do you need one and what are its key components were here to break it down lets get right to it an SLA is a contract between the service provider and a customer it outlines the providers responsibilities the customers expectations the penalties if these expectations arent met and the metrics used to measure these deliverables there are three main types of slas customer based internal and multi-level customer-based slas are contracts between a business and a third-party service provider internal slas are contracts between different members of the same company multi-level slas are a single document that includes both General and specific slas slas are composed of two main elements service agreements and service management service agreements Define the features and functionalities the customer receives from the provider service