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SaaS Service Level Agreement

This template outlines the Service Level Agreement (SLA) between a SaaS provider and its customer, defining the level of service expected and the remedies for non-compliance. It should be used when establishing an agreement for cloud-based software services.

Updated 15d ago
SaaSService Level AgreementSLACloud ServicesSoftwareAgreementSouthern Africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Parties to the Agreement

This Service Level Agreement ("Agreement") is made and entered into effective as of {{effective_date}} (the "Effective Date"), by and between:

Service Provider: {{service_provider_company_name}}, a company duly incorporated and existing under the laws of {{service_provider_jurisdiction}}, with its principal place of business at {{service_provider_address}} (hereinafter referred to as "Provider").

Customer: {{customer_company_name}}, a company duly incorporated and existing under the laws of {{customer_jurisdiction}}, with its principal place of business at {{customer_address}} (hereinafter referred to as "Customer").

2. Purpose and Scope

This Agreement defines the service levels that Provider will deliver to Customer for the Software as a Service (SaaS) product(s) specified in Appendix A (the "Services"). It sets forth the metrics, responsibilities of both parties, and the remedies for failure to meet the agreed service levels.

3. Definitions

"Downtime": Periods when the Services are unavailable for use by the Customer, excluding scheduled maintenance.

"Uptime": The percentage of time the Services are operational and accessible.

"Service Credit": A monetary rebate or discount applied to future invoices as compensation for unmet service levels.

"Response Time": The time from when a support request is logged by the Customer to when the Provider acknowledges receipt and begins investigation.

"Resolution Time": The time from when a support request is logged by the Customer to when the issue is resolved and the Services are restored to normal operation.

4. Service Availability

4.1. Guaranteed Uptime: Provider guarantees an Uptime of {{uptime_percentage}}% per calendar month for the core Services. This excludes scheduled maintenance periods.

4.2. Scheduled Maintenance: Provider will notify Customer at least {{maintenance_notification_hours}} hours in advance of any scheduled maintenance that may result in Downtime. Scheduled maintenance will ideally be performed during off-peak hours (e.g., {{off_peak_hours}}).

5. Support Services

5.1. Support Channels: Customer can access support via {{support_channels}} (e.g., email, phone, support portal).

5.2. Support Hours: Support is available from {{support_start_time}} to {{support_end_time}} on {{support_days_of_week}}.

5.3. Response Times:

- Critical Issues (e.g., system down, major data loss): Response within {{critical_response_hours}} hours.

- High Issues (e.g., significant functional impairment): Response within {{high_response_hours}} hours.

- Medium Issues (e.g., minor bugs, non-critical errors): Response within {{medium_response_hours}} hours.

- Low Issues (e.g., general inquiries, feature requests): Response within {{low_response_hours}} hours.

5.4. Resolution Times: Provider will use commercially reasonable efforts to resolve issues within the following indicative times:

- Critical Issues: Resolution within {{critical_resolution_hours}} hours.

- High Issues: Resolution within {{high_resolution_hours}} hours.

- Medium Issues: Resolution within {{medium_resolution_hours}} hours.

- Low Issues: Resolution within {{low_resolution_hours}} hours.

6. Service Credits

6.1. Calculation: If Provider fails to meet the guaranteed Uptime in a given calendar month, Customer will be entitled to a Service Credit calculated as follows:

- Uptime between {{first_tier_uptime_min}}% and {{first_tier_uptime_max}}%: {{first_tier_credit_percentage}}% of the monthly service fee.

- Uptime below {{second_tier_uptime_threshold}}%: {{second_tier_credit_percentage}}% of the monthly service fee.

6.2. Claim Process: Customer must submit a claim for Service Credits within {{claim_submission_days}} days of the end of the month in which the breach occurred, providing details of the non-compliance. Service Credits will be applied to the subsequent invoice.

6.3. Maximum Credit: The maximum Service Credit awarded in any given month shall not exceed {{maximum_credit_percentage}}% of the monthly service fee.

7. Customer Responsibilities

Customer agrees to provide accurate and timely information for support requests, ensure its network and equipment meet the minimum requirements for the Services, and adhere to the terms of the main service agreement.

Customer shall ensure that all users operate the service within the {{acceptable_use_policy}} and {{license_terms}}.

8. Exclusions

This SLA does not apply to performance issues or unavailability of the Services caused by: (a) factors outside of Provider's reasonable control (e.g., force majeure events, Internet access issues beyond the Provider's network); (b) any act or omission by Customer or its users; (c) Customer's equipment, software, or other technology; or (d) scheduled maintenance.

9. Termination

Breach of this SLA may be considered a breach of the overarching service agreement, subject to the termination clauses outlined therein. Repeated and significant breaches of service levels may entitle the Customer to terminate the underlying service agreement.

Either party may terminate this SLA and the associated service agreement by providing written notice of {{termination_notice_days}} days to the other party.

10. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_jurisdiction}}.

11. Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals or representations, written or oral, concerning its subject matter.

Signature Block

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

_____________________________

{{service_provider_company_name}}

By: {{service_provider_authorised_signatory}}

Title: {{service_provider_signatory_title}}

Date: {{signature_date}}

_____________________________

{{customer_company_name}}

By: {{customer_authorised_signatory}}

Title: {{customer_signatory_title}}

Date: {{signature_date}}

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