UII UPDATE 134 | Q2 2022
Intelligence Update
Cloud SLAs punish, not compensate
A service level agreement (SLA) is a contract between a cloud provider and a user. The SLA describes the provider’s minimum level of service, specified by performance metrics, and the compensation due to the user should the provider fail to deliver this service.
In practice, however, this compensation is punitive. It seems designed to punish the provider for its failure, not to compensate the user for their loss.
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