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What is Uptime / SLA (Service Level Agreement)?

Uptime is the percentage of time a system is operational, and an SLA is a formal commitment from a provider specifying guaranteed service levels such as availability.

Definition

Uptime measures the proportion of time a system is available and functioning, usually expressed as a percentage such as 99.9 percent. A Service Level Agreement (SLA) is a contractual commitment from a service provider that defines the levels of service it guarantees, including availability, support response times, and the remedies, often service credits, if those levels are not met. Higher uptime guarantees translate into less permitted downtime: 99.9 percent allows roughly nine hours of downtime per year, while 99.99 percent allows under an hour. SLAs make a provider's reliability promises measurable and enforceable.

How Uptime / SLA Works in ERP

For cloud ERP, the vendor's SLA states the guaranteed uptime and what compensation applies if availability falls short, which matters because ERP downtime can halt order processing, invoicing, and operations. Buyers evaluate these commitments alongside how planned maintenance windows and exclusions are handled, since those can affect real availability. The SLA also typically covers support responsiveness and may reference disaster-recovery commitments. Understanding the fine print helps organisations judge whether a provider's reliability matches the criticality of their ERP.

ERP Vendors with Strong Uptime / SLA

Frequently Asked Questions

How much downtime does 99.9 percent uptime allow?

A 99.9 percent uptime guarantee permits roughly 8.76 hours of downtime per year, while 99.99 percent allows about 52 minutes per year; small differences in the percentage translate into meaningful differences in allowed outage time.

What happens if a vendor misses its SLA?

Most SLAs provide remedies such as service credits proportional to the shortfall, though these rarely fully offset the business impact of an outage, so buyers should weigh the guarantees against how critical continuous availability is to them.

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