What is a service level agreement in SaaS?
A Service Level Agreement (SLA) is a subset of a Master Service Agreement (MSA) and contains specific details about the level of service that will be provided by the SaaS vendor. This agreement will specifically define the performance metrics, responsibilities, and expectations of both parties.
An SLA is likely to include uptime guarantees, the level of support that will be provided to the customer, response times for any support requests, information on how these requests will be managed and escalated, information on how the vendor will protect the customer’s data and ensure the security of its systems and networks, as well as details on how it will compensate the customer if it fails to meet the agreed-upon service levels.
Related Definitions
Break Clause
What is a break clause?
A break clause refers to a provision within a SaaS agreement that allows either the customer or the SaaS provider to terminate the contract before the end of the initial term. A break clause will typically set out the conditions or requirements that must be met for either party to exercise their right to terminate an agreement early. For example, a break clause can enable users to cancel their subscription if they are dissatisfied with the service.
Zero-Based Budgeting
What is zero-based budgeting?
Zero-based budgeting is an accounting technique that requires all expenses to be justified and approved for each financial period, starting from zero rather than a pre-existing spend. This enables organizations to monitor and assess the necessity of each cost on a more granular level, lowering expenses and promoting fiscal responsibility.
Originally conceived in the 1970s, zero-based budgeting isn’t a new idea — but in the current economic climate, accounting for every dollar is helping businesses to regain control over their outgoings. The technique can be applied to a wide range of costs, from research and development to asset management.
SaaS Agreement
What is a SaaS agreement?
A SaaS agreement, or contract, details the terms of your purchase from a SaaS vendor.
FinOps
What is FinOps?
FinOps refers to financial operations. In relation to cloud technology, Cloud Financial Operations is a practice that focuses on aligning cloud costs with business objectives and improving overall financial management in the cloud. When implemented correctly, it can provide you with a better understanding of your cloud spending patterns, enabling you to make more informed decisions on how to allocate and manage your costs.
SaaS Management
What is SaaS management?
SaaS management is the process of identifying, managing, and governing the software applications that exist within an organization’s technology portfolio.
When software goes unmanaged, it not only puts the business at risk of data breaches and security issues, but it can also lead to a substantial amount of wasted spend as a result of redundant and duplicate SaaS apps, not to mention unused licenses.
Cloud Instances
What is an instance in the context of cloud computing?
In cloud computing, an instance refers to a virtual server provided by a third-party cloud service, for example AWS, Azure or Google Cloud. These instances ultimately enable companies to deploy and run their applications or services in the cloud, in a scalable and flexible manner. This is because instances are on-demand and can be adjusted based on your workload requirements.