Explain the importance of having a non-technical SLA constructed as part of the service contract. Who are the intended users of a SLA and how is it...

At a high
level, the primary intent of an SLA is to level-set expectations between supplier and buyer and
tie said expectations to specific metrics (i.e. downtime, response time, etc.). From the buyer
standpoint, the SLA outlines the level of service that the supplier will provide and also detail
the remedies/penalties should the supplier not provide the outlined level of service.
Conversely, from the supplier standpoint, the SLA, if well-written, clearly details what the
supplier will be providing (i.e. the service) and protects them from overreach by the
buyer.

The primary components of an SLA are:

1. Quality Metricsan SLA needs to clearly and crisply detail the when/what/how much
   service will be provided as part of the overarching services agreement. This can be accomplished
   via the creation of agreed-upon quality metrics and their respective thresholds (i.e. downtime
   less than 99.99%). Agreeing upon the metrics ahead of time and covering as many of your bases as
   possible will save significant headaches down the line.
2. Communication
   Channelsit is important to clearly define how communications regarding service level will be
   made between the two parties. This ensure that both parties are able to appropriately respond to
   requests / concerns by having the correct personnel involved and also creates a paper trail
   should there be a dispute down the line.
3. Penaltiesthe penalties (typically
   financial) for supplier non-performance, and the process for disbursement (i.e. straight cash
   payment, discount off of next period's service payment, etc.) must be clearly
   defined.
4. Dispute resolutionif it's not addressed in the over-arching
   services agreement, defining the process for dispute resolution is paramount. Because of the
   high-cost of litigation this is especially key if there's an imbalance in the size of the two
   parties.
5. To wrap up, everyone benefits from having a strong SLA. It ensures
   that everyone is on the same page, and gives both parties something to point to throughout the
   life of the agreement.