MSP Service Level Agreements: What to Look For
Service Level Agreements (SLAs) are the foundation of your MSP relationship. Learn what to look for, what to avoid, and how to negotiate terms that protect your business.
Essential SLA Components
Response Time Guarantees
Defined timeframes for acknowledging and responding to different types of issues
What to Look For:
- Critical issues: 15-30 minutes
- High priority: 1-2 hours
- Medium priority: 4-8 hours
- Low priority: 24-48 hours
Red Flags:
- No specific response times defined
- Response times longer than 4 hours for critical issues
- No differentiation between issue priorities
Resolution Time Objectives
Target timeframes for resolving issues completely
What to Look For:
- Critical system outages: 2-4 hours
- Major functionality issues: 8-24 hours
- Minor issues: 48-72 hours
- Enhancement requests: 5-10 business days
Red Flags:
- No resolution timeframes specified
- Unrealistic resolution promises
- No escalation procedures defined
Availability Guarantees
Uptime commitments for systems and services
What to Look For:
- Network uptime: 99.9% minimum
- Server availability: 99.95%
- Email systems: 99.9%
- Business applications: 99.5%
Red Flags:
- Uptime guarantees below 99%
- No measurement methodology defined
- Exclusions not clearly specified
Performance Metrics
Measurable standards for system and service performance
What to Look For:
- Network response times
- Application performance benchmarks
- Backup completion rates
- Security incident response metrics
Red Flags:
- Vague performance descriptions
- No baseline measurements
- Missing monitoring procedures
Critical SLA Terms to Understand
Service Credits
Compensation provided when SLA targets are not met
Why it matters: Ensures MSP accountability and provides financial recourse
What to Look For:
- Automatic credit calculation
- Reasonable credit percentages (5-25% of monthly fees)
- Clear qualification criteria
- Maximum credit caps defined
Exclusions and Limitations
Circumstances where SLA guarantees don't apply
Why it matters: Prevents MSPs from avoiding responsibility unfairly
What to Look For:
- Reasonable exclusions only (force majeure, client-caused issues)
- Clear definition of excluded scenarios
- Limited maintenance windows
- No blanket exclusions for third-party services
Escalation Procedures
Process for handling unresolved issues or SLA breaches
Why it matters: Ensures issues receive appropriate attention and resources
What to Look For:
- Clear escalation triggers
- Defined escalation timeframes
- Management involvement procedures
- Customer notification requirements
Reporting and Monitoring
How SLA performance is measured and communicated
Why it matters: Provides transparency and accountability
What to Look For:
- Regular performance reports
- Real-time monitoring dashboards
- Historical trend analysis
- Third-party monitoring tools
SLA Red Flags to Avoid
⚠️ Vague or Ambiguous Language
Example: "Best effort" or "reasonable time" without specific definitions
Impact: Allows MSP to avoid accountability for poor performance
⚠️ Excessive Exclusions
Example: Long lists of circumstances where SLAs don't apply
Impact: Reduces the practical value of SLA guarantees
⚠️ No Financial Penalties
Example: SLAs with no service credits or compensation for breaches
Impact: Removes incentive for MSP to meet commitments
⚠️ Unrealistic Promises
Example: 100% uptime guarantees or instant response times
Impact: Indicates inexperienced or dishonest provider
⚠️ No Measurement Methodology
Example: SLAs without explaining how performance is measured
Impact: Creates disputes over whether targets were met
SLA Negotiation Strategy
Before Signing
- Benchmark SLA terms against industry standards
- Request references from similar-sized clients
- Clarify all technical terms and definitions
- Ensure SLAs align with your business requirements
- Review penalty and credit structures carefully
Contract Terms
- Negotiate reasonable service credits
- Limit MSP liability exclusions
- Include regular SLA review periods
- Define clear termination clauses
- Specify data return procedures
Ongoing Management
- Monitor SLA performance regularly
- Document all incidents and responses
- Hold regular performance review meetings
- Address issues promptly and formally
- Maintain records for contract renewals
Industry-Standard SLA Benchmarks
Need Help Reviewing Your MSP SLA?
Don't sign an MSP contract without proper SLA review. Our experts can help you evaluate terms and negotiate better agreements that protect your business.
Frequently Asked Questions About MSP Service Level Agreements
What should be included in an MSP SLA?
An MSP SLA should include response time guarantees (15-30 minutes for critical issues), resolution time objectives, availability guarantees (99.9% uptime minimum), performance metrics, service credits for breaches, escalation procedures, and clear reporting requirements. Avoid SLAs with vague language or excessive exclusions.
What is a good response time for MSP support?
Industry-standard MSP response times are: Critical issues (15-30 minutes), High priority (1-2 hours), Medium priority (4-8 hours), Low priority (24-48 hours). Leading MSPs like Affinity MSP offer 5-second call pickup guarantees with 15-minute critical response times.
How do MSP service credits work?
MSP service credits provide compensation when SLA targets aren't met, typically 5-25% of monthly fees depending on the severity and duration of the breach. Credits should be automatically calculated and applied, with clear qualification criteria and reasonable maximum caps.
What uptime guarantee should I expect from an MSP?
Standard MSP uptime guarantees range from 99.5% to 99.9%. Network uptime should be 99.9% minimum (8.7 hours downtime per year), server availability 99.95%, and email systems 99.9%. Anything below 99% indicates inadequate infrastructure or unrealistic promises.
Can I negotiate MSP SLA terms?
Yes, MSP SLA terms are negotiable. Focus on response times that match your business criticality, reasonable service credits, limited exclusions, regular review periods, and clear termination clauses. Benchmark terms against industry standards and request references from similar clients.