LegalGELegalGE
...

SaaS Service Level Agreements

What is a good Uptime?

Industry standard is 99.9% (about 8 hours downtime per year).

Is scheduled maintenance considered downtime?

No, if the provider notified you in advance (Maintenance Window).

Can I terminate due to poor SLA?

Yes, chronic SLA breaches can constitute a material breach and grounds for termination.

How to get credits?

Often the client must actively request credits after an incident.

Reading Time

2 min

Published

...

SaaS Service Level Agreements (SaaS SLA) are an integral and critical part of a SaaS (Software as a Service) contract. It defines guarantees for software Availability and Performance quality. For the client, an SLA is insurance that the service will work without interruption, and for the provider, it is a promise, breach of which leads to financial liability (Service Credits). With the growth of the SaaS market in Georgia, correct SLA formulation becomes a competitive advantage.

Legal.ge offers SLA drafting and auditing. We help SaaS companies create realistic guarantees and clients demand adequate compensation during service outages.

What does the SaaS SLA Service cover?

The service focuses on quality metrics:

  • Uptime Guarantee: Defining the percentage the system will be operational (e.g., 99.5% vs 99.9%).
  • Downtime Definition: What counts as an outage (scheduled maintenance is often excluded).
  • Support Times (Response & Resolution Time): How quickly Support must respond and resolve issues based on priority.
  • Service Credits: Formula for calculating discounts or compensation upon SLA breach.
  • Monitoring and Reporting: How Uptime is measured and who submits the report.

Common Real-World Scenarios

Problems in SLA:

  • Vague Downtime: The service is very slow but not down. According to the SLA, this is not a breach.
  • Low Compensation: The service was down for 2 days, but the client received only a 5 GEL credit.
  • Force Majeure: The provider claims force majeure for every technical glitch.

Legal Framework: Freedom of Contract

SLAs are regulated by the agreement of the parties. The law does not set a minimum Uptime, so everything depends on the contract text.

Step-by-Step Service Process

  1. Metrics Selection: Identifying critical business parameters.
  2. Drafting: Writing the SLA text.
  3. Simulation: Checking compensation calculation examples.
  4. Integration: Inclusion in the main contract.

Why choose a specialist on Legal.ge?

An SLA is not just a technical document; it is a financial instrument. Lawyers on Legal.ge will help you protect your business from service failure.

Updated: ...

Specialists for this service

Loading...