CompTIA Cloud Essentials+ (CLO-002)Business Principles of Cloud EnvironmentsMedium
A company has adopted a cloud-first strategy and is heavily relying on a third-party cloud provider for its core business applications. The company wants to ensure that the services provided meet specific performance metrics, security standards, and availability targets. Which document primarily defines these expectations and the remedies if they are not met?
- AMaster Service Agreement (MSA)
- BNon-Disclosure Agreement (NDA)
- CMemorandum of Understanding (MOU)
- DService Level Agreement (SLA)
Show answer & explanationAnswer & explanation
Correct answer: D. Service Level Agreement (SLA)
A Service Level Agreement (SLA) is a contract between a service provider and a customer that specifies the level of service expected, including performance metrics, availability, and responsibilities, as well as penalties or remedies for non-compliance.
Why the other options are wrong
- A. An MSA is a broader contract that establishes general terms for services, but the specific service levels are detailed in an SLA.
- B. An NDA protects confidential information, not service performance or availability.
- C. An MOU is a less formal agreement outlining mutual understanding and intent, not a legally binding contract for service levels.
Service Level Agreement (SLA)
A contract between a service provider and a customer that specifies the level of service expected, including performance metrics, availability, security, and responsibilities, along with penalties or remedies for non-compliance.
- Defines service quality and expectations
- Includes metrics, responsibilities, and remedies
- Crucial for managing cloud vendor relationships
Memory trick: MSA is the big book, SLA is the chapter on service quality.