Most people know what a SLA (Service Level Agreement) is but they don’t get how it actually relates back to their business.
The whole point of an SLA really isn’t to compensate the client (you) for a loss, it’s to make it unprofitable for the service provider to keep making the same mistakes.
In other words, let’s say our margins are 15%. If we have a serious problem during a month, we have to pay out for technician time and cough up to all of the affected customers which could cost us say 25%. In other words, we lose 10% instead of making 15%.
Hopefully that helps make sense why SLAs are so highly valued. That’s why it’s in ours as the “IT service provider’s” best interests to make sure those mistakes don’t happen, or if they do come up with a prevention plan.