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Services Level Agreements Provide Protection for Cloud-Based Services

Most companies are familiar with the use of service level agreements (SLAs) when contracting with internet service providers. 

The same concerns that drive the use of SLAs when purchasing internet services apply to the purchase of cloud-based services.

For example, a typical internet service SLA will include terms that require certain service availability levels and quality metrics, and provide for compensatory service credits. 

Similarly, when a company purchases cloud services, such as web hosting, video conferencing or accounting services, it will want clear, contractually enforceable standards for when such services are available, sufficiently functioning and how it will be compensated if such standards are not met.