You likely know that a Service Level Agreement (SLA) is a thing of immense importance when picking out a web hosting provider, but if you’re not completely sure what a web hosting SLA is, this guide is just for you.

While good-old word of mouth still plays its part in marketing, nowadays, it can only take your business so far. Sooner or later you’ll figure out that not having an online presence can significantly cripple your business and stagnate its growth.  

So, whether you want to get your business online, shift from a brick-and-mortar store to an ecommerce platform or bring your blog project to life – you’ll want to choose a web hosting service and make sure it’s a solid one.

This is where Service Level Agreements come in.

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Before selecting one web hosting provider over the others, you’ll want to check a couple of things first including service reliability, uptime score, features, security, and customer support.

It’s smart to consider whether any of these sections are backed by an SLA, which helps guarantee performance. But first, let’s first clear up what that is and why you should care about it.

What is a Service Level Agreement (SLA)?

Short for Service Level Agreement, SLA is a type of contract that takes place between two parties and in most cases, these are a customer and a service provider. 

This contract defines the level of service that’s expected to be provided to a customer by a service supplier and it often includes multiple metrics according to which the service is measured as well as remedies or penalties in case service isn’t up to the level. 

Thanks to this, a customer can be sure they’ll receive the service they’ve signed up for or some sort of compensation if the service doesn’t cut it.

A web hosting company, for instance, will promise network availability of 99.9% per year, specific response times, and site loading speed. However, this agreement can also cover customer support, specific support levels, and promise priority to premium customers.  

More often than not, an SLA will come as a part of the terms of service or as a part of the same section, so make sure to read it before subscribing to a service. 

What about Network SLA Exclusions? 

In simplest terms, SLA Exclusions are one-time occasions where the agreement doesn’t apply. So, Network SLA Exclusions are specific exclusions related to network availability. 

This permits web hosting providers to slip a single instance of network unavailability such as scheduled maintenance for hardware/software upgrades. 

In addition to this, these exclusions may come into effect in case of force majeure or events beyond reasonable control such as acts of war, insurrection, labor strikes, riots, and pandemics like Covid-19.  

Key components of an SLA

A Service Level Agreement (SLA) in web hosting is a formal contract that outlines the expected service levels between the hosting provider and the customer. Here are the essential components:

Service overview

The foundation of any hosting SLA begins with a comprehensive service overview that clearly identifies all parties involved and outlines the scope of services. This section establishes the fundamental expectations and responsibilities of both the provider and the client, including the specific services covered under the agreement and the duration of the contract.

Performance guarantee

At the heart of every hosting SLA lies the uptime guarantee, typically promised at 99.9% or higher, which ensures website availability. This section also defines crucial performance metrics such as server response times and load capacity. These metrics are precisely measured and monitored to ensure compliance with the agreed-upon standards.

Support famework

Technical support forms a crucial component of the SLA, detailing the availability of assistance channels, including phone support, email, and ticket systems. The agreement specifies response time commitments for different severity levels of issues and outlines the escalation procedures for unresolved problems.

Security infrastructure commitments

The security framework within an SLA encompasses data protection measures, encryption standards, and infrastructure specifications. This section typically outlines backup procedures, disaster recovery protocols, and data center specifications to ensure robust service delivery and data protection.

Compensation structure

When service levels fall short of guaranteed standards, the SLA includes clear compensation terms. This usually takes the form of service credits or financial compensation, calculated based on the duration and severity of service disruptions. The agreement should clearly state how these credits are calculated and applied.

Exclusions

The SLA must address scheduled maintenance windows and clearly define what falls outside the scope of the agreement. This includes circumstances beyond the provider’s control, such as force majeure events or issues arising from client-side modifications. Regular review periods are typically built into the agreement to ensure it remains relevant and effective over time.

Why should you care about SLA?

It doesn’t matter if you’re a customer or a service provider, both sides are sure to benefit from an SLA. This is because the clauses set out in an SLA will serve as proof of all conditions the two parties agreed upon before completing the sign-in process. This way, if any of the parties breaks or intentionally ignores any of the laid out conditions, the other party has the legal right to take action to right the wrong.  

This is particularly important when picking out a web hosting provider, since an SLA should include critical information about the hosting resources you’re going to get such as storage space, bandwidth, RAM, and number of CPUs.

It should also point out the service time period, response time, and problem resolution time frame. For instance, if you report an issue with your service to the provider’s technical team, an SLA will inform you how long you’re supposed to wait before receiving a response.

In addition to carefully reading an SLA, you’ll want to pay special attention to the small print, since it’s something that can make or break a deal for you – most of the time, an SLA will sound too good to be true until you read the small print.  

Also, while thoroughly going through every point of an SLA, you’ll want to have a clear picture of what value for money you’ll be getting with a web hosting provider of your choice. 

Let’s take Liquid Web as an example of this — yes, they seem pretty pricey at first, but after you look at the level of service you’ll get with them, the price will start looking rather reasonable. Liquid Web guarantees network uptime of 100% and this guarantee makes sure that major routing devices within their network are reachable all the time. Also, if Liquid Web fails to meet this SLA, their dedicated hosting customer will receive a credit for then times the amount of downtime – so, if you’ve suffered one hour of downtime, it means you’ll get 10 hours of credit.

On the other hand, most web hosting providers (such as Scala Hosting) offer a standard uptime guarantee of so-called three-nines – that is 99.9% of uptime. And then there are such providers as iPage that boast about having a 99.9% uptime guarantee but don’t back it up by an SLA or offer any compensation at all.

So, while searching for a web hosting provider don’t forget to carefully study an SLA while paying special attention to the small print. 

The importance of a good SLA when choosing a web hosting service

An SLA can tell you a lot about a company and its attitude towards its customers — are they customer-centric, product-centric or fall somewhere in between? It also shows whether a web hosting provider takes its business seriously since an SLA is a prerequisite to professionalism.

Besides showing a commitment to customers, SLAs will show you what exactly you can expect from the web hosting provider, which will prevent any potential misunderstanding.

Also, by specifying all Key Performance Indicators (KPIs), the agreement will set up expectations about the provider’s performance — it will help customers to choose the right provider while helping the provider stay focused on customer satisfaction and keep their services up to the standard.

What happens if a web host violates the SLA?

When a web hosting provider violates their Service Level Agreement (SLA), several consequences come into play. A violation occurs when the provider fails to meet the promised service levels, such as falling below the guaranteed uptime percentage or failing to respond to support tickets within the agreed timeframe.

The most immediate consequence is typically financial compensation to the customer. This usually takes the form of service credits or refunds, which are calculated based on the severity and duration of the violation.

For example, if a website experiences downtime beyond the guaranteed uptime percentage, the provider may offer a prorated refund or credit a percentage of the monthly hosting fee.

Beyond the immediate financial implications, SLA violations can have serious repercussions for the hosting provider’s reputation and customer relationships.

The provider is expected to communicate transparently about the violation, explain the cause, and present a clear plan to prevent similar issues in the future.

If violations become frequent or severe, customers may have the right to terminate their contracts without penalties, and the provider might face potential legal action if the SLA is legally binding.

Before signing up for a web hosting service, check for an SLA

Since an SLA includes all critical information about the use and amount of hosting resources, it’s one of the first things you should check out when choosing a web hosting provider. 

It won’t only cover a service time period, but also the reliability of that service, uptime guarantee, compensations, response time, and problem resolution time frame.

So, before signing up with a web hosting provider, remember to dive deep into their Service Level Agreement.

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