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Partnering with an MSP is a vital step that will help an organization save good amounts of money. Organizations adopting managed IT services will be able to reduce IT operating expenses and operational costs besides saving on capital budget. Mostly, a huge number of MSPs function on a subscription-based model in which clients pay fees on a monthly or annual basis, allowing them to study if this fee amount fits their budget. 

Read more: What is SLA Based Services

A service level agreement (SLA) is sent to the client. This SLA is customized based on the company’s requirements and enables effectively managing software and hardware, reducing the total cost of application ownership, and increasing productivity. Client’s will just have to pay for the specific service they need instead of unnecessarily paying for expensive packages.

A service level agreement (SLA) is a contract between a business and its customer outlining the details that the two parties have agreed to in a transaction. The types of SLAs that an organization can use depends on many significant aspects. While some are targeted at individual customer groups, others discuss issues relevant to entire companies. This is because the needs of one user differ from those of another. Below is a list of the types of SLAs used by businesses today, and how each one is utilized for specific situations:

Customer-based SLA

This type of agreement is used for individual customers and comprises all relevant services that a client may need, while leveraging only one contract. It contains details regarding the type and quality of service that has been agreed upon. For example, a telecommunication service includes voice calls, messaging and internet services, but that all exists under a single contract.

Service Based SLA

This SLA is a contract that includes one identical type of service for all of its customers. Because the service is limited to one unchanging standard, it is more straightforward and convenient for vendors. For example, using a service-based agreement regarding an IT helpdesk would mean that the same service is valid for all end-users that sign the service-based SLA.

Multi-level SLA

This agreement is customized according to the needs of the end-user company. It allows the user to integrate several conditions into the same system to create a more suitable service.