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As cloud computing is taking center stage for different IT enabled business enterprises it is highly essential to define policies, procedures and service level agreements (SLA) in order to maximize the value of cloud for both the consumer and the service provider. SLA statements written must be measurable, achievable, relevant and timely and should remain specific for cloud services aimed at minimizing ambiguities for both the cloud consumer and the cloud service providers.


The cloud service models (IaaS, PaaS, SaaS, etc.) offer new paradigms of computing resources and IT enabled capabilities for all types of organizations. IT industry experts claim that over 80% of enterprises have adopted some cloud service in their organization. The key term ‘service’ in cloud computing creates the need to develop contracts named service level agreements (SLA) between the client organization and the cloud service provider (CSP). SLAs are used by companies for a long time, especially when the company hires third party service provider to manage some of their business operations. SLAs will ensure the consumer receives all the services availed as agreed by the provider and of course ensure money’s worth for the client.


Know more: Cloud SLA


Likewise, an organization deciding to hire cloud services for their IT needs, SLAs come into play to make sure the services offered by the CSP are delivered as promised. SLA has become a pre-requisite due to cloud business strategy and provides series of rules and directives that must be taken by cloud consumers to evaluate and negotiate terms with CSP. It describes a set of non-functional requirements of cloud services. An example of SLA can be the return of operations (RTO) in case of any service failure in the cloud.