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SLA, SLO, SLI: Structuring Your IT Service Performance and Aligning Technical, Business and Legal Aspects

Auteur n°3 – Benjamin

By Benjamin Massa
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Summary – In an environment where availability, service quality and legal compliance underpin performance, mastering your commitments requires a perfectly aligned SLA/SLO/SLI triptych. This framework separates contractual commitments (SLAs), operational objectives (SLOs) and factual measurements (SLIs) to align technical, business and legal teams, optimize error budgets, guide investment decisions and prevent penalties. Solution: formalize realistic SLAs, translate them into measurable SLOs, deploy reliable SLIs and executive dashboards to manage and secure your IT services.

In an IT environment where availability and service quality are critical, it’s not enough that “it works”: you must be able to demonstrate reliability, manage commitments and legally secure every promise. Service Level Agreements (SLAs), Service Level Objectives (SLOs) and Service Level Indicators (SLIs) form an inseparable triptych for structuring the performance of your services, whether it’s a SaaS platform, a digital product or a mission-critical information system.

Beyond technical monitoring, these levers enable alignment of business priorities, control of investments and transformation of operational data into a genuine strategic decision-making tool.

The SLA, SLO and SLI Triptych

Service performance cannot be decreed; it must be defined. It relies on a clear contract (SLA), internal objectives (SLO) and factual measurements (SLI). Without this shared governance, technical, legal and commercial teams often speak different languages.

SLAs: A Clear Contractual Commitment

The SLA represents the formal promise made to customers, detailing availability levels, response times and resolution deadlines, as well as the penalties for non-compliance. It legally binds the company and serves as a common reference point for all stakeholders. Precision in the SLA is crucial: it defines the scope of services, exclusions, support tiers and escalation procedures.

When drafting it, precise language is essential, vague terms must be avoided, and exceptions thoroughly documented. For example, an SLA may promise 99.9% uptime per month but specify planned maintenance windows or impacts stemming from third-party dependencies. These clauses protect the company while establishing a framework of trust.

Example: A mid-sized firm initially drafted its SLA using generic metrics without clarifying the concept of “maintenance windows.” Business teams and the client interpreted availability differently, leading to disputes. This incident highlighted the importance of formalizing every criterion and transparently describing service tiers.

SLOs: Internal Operational Objectives

SLOs translate the SLA into concrete operational targets for technical teams—for example, an API request success rate, an average response time or a maximum Mean Time To Repair (MTTR). They serve as the roadmap for daily performance management and for structuring monitoring and alerting processes.

SLOs are set according to service criticality and the actual capacity of the infrastructure. They may vary by environment (production, pre-production, testing) and should follow a continuous improvement logic. An overly ambitious SLO can lead to unnecessary overinvestment, while a too-lax SLO can result in quality drift.

Defining SLOs structures efforts around metrics shared by DevOps, support and business teams. In case of deviation, they guide action plans and investment priorities in infrastructure or automation.

SLIs: Factual Performance Measurements

SLIs correspond to the data actually measured: API latency, percentage of successful requests, continuous availability or average restoration time. They are typically collected via monitoring and observability tools, such as availability probes or metrics from Prometheus.

SLI reliability is essential: a misconfigured or inaccurate indicator can lead to erroneous decisions, phantom alerts or lack of incident visibility. Therefore, robust pipelines for collecting, transforming and storing metrics must be implemented.

Without reliable SLIs, you can’t know if SLOs are met and thus whether the SLA is being honored. Operational data quality then becomes a governance pillar for IT steering committees.

Aligning SLAs and SLOs

An SLA must be realistic and aligned with your operational capabilities, and each SLO must be granular enough to drive continuous improvement. The articulation between these two levels ensures consistency between customer promises and internal efforts.

Aligning Business Commitments and Technical Performance

Co-developing SLAs and SLOs requires the involvement of business leaders, development teams and architects. Each brings a perspective: business stakeholders define needs and priorities, technical architects outline possibilities, and support anticipates incident scenarios.

This collaborative effort avoids unrealistic promises and establishes a common exchange platform. It clarifies functional and technical scope, evaluates dependencies and quantifies risks. Regular reviews harmonize expectations and foster a culture of shared responsibility.

By involving all stakeholders, the SLA evolves beyond a mere contractual document to reflect a pragmatic operational vision. IT executive committees then gain a transversal steering tool.

Prioritizing Investments Using SLOs

Each SLO must be linked to indicators of business criticality and risk. For example, an online payment service will have stricter SLOs than an internal information portal. This hierarchy guides budget allocation and technology choices (scaling, redundancy, caching).

SLOs pave the way for an iterative improvement roadmap. Priority investments focus first on the most critical services, then extend to lower-impact layers. This approach ensures measurable ROI and prevents resource dispersion.

By rigorously following these targets, CIOs can document resource usage, justify budgets and demonstrate the impact of each dollar invested on reliability and customer satisfaction.

Avoiding Unrealistic Promises and Managing Penalties

Offering a 99.999% SLA without an appropriate architecture exposes the company to high penalties in case of breach. It’s better to start with achievable service levels and progressively raise targets, linking each new tier to a technical upgrade plan.

Penalty clauses should remain deterrent but proportionate: they encourage performance without jeopardizing the client relationship over minor failures. Penalties can be capped or adjusted based on incident severity and business impact.

Mastering SLOs and contingency plans (escalation playbooks, recovery procedures) reduces exposure to penalties and strengthens mutual trust. IT oversight committees incorporate these indicators into their regular governance.

Example: A retailer promised 99.99% availability for its click-&-collect service without planning geographic redundancy for its APIs. During an incident, the contractual penalty equaled 20% of monthly revenue. This experience underscored the need to calibrate SLAs in line with architecture and tie SLOs to a realistic error budget.

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Transforming Observability through SLIs

SLIs form the direct link between operational reality and strategic objectives. Collecting them rigorously allows you to anticipate incidents and continuously adjust priorities. Observability thus becomes a true engine of resilience and innovation.

Collecting and Ensuring the Reliability of SLIs

The first step is to precisely identify relevant metrics (latency, error rate, uptime, MTTR) and ensure their reliability. Probes should be placed at every critical point: edge CDN, API gateway, databases, etc.

A redundant collection pipeline (e.g. agent plus external probe) guarantees measurement availability even if one monitoring component fails. Data are stored in a time-series platform or in a data lake or data warehouse to enable historical analysis and event correlation.

SLI quality also depends on regularly purging obsolete data and validating collection thresholds. A skewed indicator compromises the entire steering system.

Observability and Real-Time Alerting

Beyond collection, real-time analysis of SLIs enables detection of anomalies before they massively affect users. Configurable dashboards (Grafana, Kibana) offer tailored views to technical leads and steering committees.

Alerts must be calibrated to avoid “alert fatigue,” with phased thresholds: warning, critical, incident. Each alert triggers a predefined playbook involving engineering, support and, if needed, executive decision-makers.

Combining logs, distributed traces and metrics provides 360° visibility into service health and accelerates incident resolution.

Error Budget and Data-Driven Decision Making

The “error budget” corresponds to the tolerated margin of error per SLO. As long as it’s not exhausted, the team can perform moderate-risk deployments. Once depleted, non-essential changes are suspended until the budget is replenished, preventing gradual quality degradation.

This mechanism enforces discipline: every new feature reflects a balance between innovation and reliability. Governance committees use the budget consumption history to prioritize optimizations or redesigns.

Example: A public agency implemented an error budget on its national online declaration portal. It found most budget spikes occurred during unplanned updates. This insight led to a weekly maintenance window, reducing budget consumption by 30% and improving user experience.

Cloud-Native Architecture for SLAs, SLOs and SLIs

A cloud-native, microservices and API-driven architecture facilitates the implementation of the SLA/SLO/SLI triptych by offering modularity, redundancy and automated scalability.

Impact of Cloud and Microservices Architectures

Distributed architectures isolate critical services and enable independent scaling of each component. By assigning SLAs and SLOs per service, you delineate responsibilities and mitigate domino effects during incidents.

Cloud environments provide auto-scaling, dynamic provisioning and multiple availability zones.

Integrating Monitoring and Executive Dashboards

Consolidating SLIs into dashboards dedicated to IT and business leadership enables quick performance reviews. Aggregated KPIs (overall availability rate, incident count, error budget consumption) feed decision-making bodies.

It’s recommended to tailor these dashboards by role: an “exec” overview, an “operations” detailed view and a “compliance” version for legal. This segmentation enhances clarity and accelerates decision cycles.

Enhancing Resilience and Redundancy with Contextual SLOs

Third-party dependencies (cloud services, external APIs) should be governed by specific SLOs and resilient architectures (circuit breaker, retry, fallback). Each integration requires an ad hoc SLO to limit impact surface.

Implementing redundant zones, multi-region databases or geographically distributed Kubernetes clusters ensures service continuity in case of local failure. SLOs then include RTO (Recovery Time Objective) and RPO (Recovery Point Objective) criteria.

This contextual approach balances cost and risk and optimizes reliability according to business criticality.

Manage Your Digital Reliability as a Strategic Asset

SLAs, SLOs and SLIs are not mere documents or metrics: they form a governance framework that aligns commercial commitments with technical capacity and legal compliance. Each step—from defining the SLA to collecting SLIs, building the SLOs and designing the underlying architecture—strengthens your IT resilience and positions reliability as a performance lever.

Whether you’re planning to overhaul your service agreements or integrate advanced monitoring, our experts are at your disposal to co-construct a contextual, modular and scalable solution that aligns with your business challenges, legal requirements and IT strategy.

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By Benjamin

Digital expert

PUBLISHED BY

Benjamin Massa

Benjamin is an senior strategy consultant with 360° skills and a strong mastery of the digital markets across various industries. He advises our clients on strategic and operational matters and elaborates powerful tailor made solutions allowing enterprises and organizations to achieve their goals. Building the digital leaders of tomorrow is his day-to-day job.

FAQ

Frequently Asked Questions about SLA, SLO, and SLI

What is the difference between SLA, SLO, and SLI?

The SLA (Service Level Agreement) defines contractual commitments in terms of availability, response time, and penalties. The SLO (Service Level Objective) translates these commitments into internal operational targets, such as a successful request rate or a target MTTR. The SLI (Service Level Indicator) corresponds to the actual measurements captured via monitoring (latency, uptime, error rate) to verify that the SLOs are met.

How do you define a realistic SLA for a cloud service?

To define a realistic SLA, you need to align commitments with your infrastructure's architecture and capacity, specify maintenance windows, document external dependencies, and identify exclusions. The drafting should avoid vague terms, set clear time frames, and include proportionate penalties. This collaborative approach between technical, business, and legal teams ensures consensus and reduces the risk of disputes.

How do you set SLOs that are consistent with the infrastructure?

Setting coherent SLOs involves assessing the criticality of the service, the actual performance of your environments (production, pre-production, and testing), and the capacity for scaling. SLOs should be ambitious yet achievable to avoid overinvestment or quality drift. They follow a continuous improvement mindset, with regular reviews to adjust targets based on operational feedback.

Which SLI indicators should you prioritize for an API service?

For an API service, you should prioritize latency (average response time and percentiles), request success rate, throughput (requests per second), and error rate (5xx codes). You can also measure connection time and overall availability. These SLIs should be collected via internal and external probes, ensuring full visibility of the user experience.

How do you align SLA and SLO to avoid disputes?

Aligning SLA and SLO is done through co-creation involving business stakeholders, support, and technical teams. Each customer commitment must be translated into clear, measurable, and documented objectives, with defined thresholds and maintenance windows. Periodic reviews harmonize expectations and allow target adjustments, ensuring both contractual and operational consistency to minimize conflicts.

How do you implement a robust SLI collection pipeline?

A robust SLI collection pipeline combines internal probes (agents) and external checks (user simulations) to guarantee data redundancy. Metrics are stored in a time-series database or a data lake, with processes for purging data and validating thresholds. This architecture ensures indicator reliability and prevents false alerts or blind spots in monitoring.

How do you use the error budget to decide on deployments?

The error budget represents the tolerated level of errors defined by the SLOs. As long as it remains available, you can deploy moderate-risk features. Once it is exhausted, only critical fixes are allowed until it is replenished. This mechanism balances innovation and reliability, and committees rely on the budget consumption history to prioritize optimizations and redesigns.

What common mistakes should you avoid when drafting an SLA?

When drafting an SLA, avoid vague terms, the absence of maintenance windows, poorly defined exclusions, and disproportionate penalties. Do not underestimate third-party dependencies and ensure alignment with your technical architecture. A lack of granularity or clarity in the scope can lead to divergent interpretations and expose you to disputes.

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