Service-level agreements (SLAs) are contractual commitments from Microsoft that define the expected level of service reliability and performance for Microsoft 365 services. These agreements establish the minimum uptime percentage that Microsoft guarantees for their cloud services, typically express…Service-level agreements (SLAs) are contractual commitments from Microsoft that define the expected level of service reliability and performance for Microsoft 365 services. These agreements establish the minimum uptime percentage that Microsoft guarantees for their cloud services, typically expressed as a percentage such as 99.9% or 99.99% availability.
Microsoft commits to maintaining high availability for Microsoft 365 services, and the SLA specifies what constitutes acceptable service levels. The uptime percentage is calculated based on the total available minutes in a billing month minus any downtime minutes, divided by the total available minutes.
When Microsoft fails to meet the committed SLA targets, customers become eligible for service credits. Service credits represent a percentage reduction in the monthly service fees and serve as compensation for the inconvenience caused by service disruptions. The credit amount typically increases as the actual uptime decreases below the guaranteed threshold.
For example, if Microsoft guarantees 99.9% uptime but delivers only 99% availability, customers may receive a 25% service credit. If availability drops below 99%, the credit percentage increases accordingly, potentially reaching 100% for severe outages.
To claim service credits, customers must submit a request through the Microsoft 365 admin center within a specific timeframe, usually within 30 days following the month in which the incident occurred. The claim should include relevant details about the affected services and the impact experienced.
It is important to note that SLAs apply to paid subscription services and may vary depending on the specific Microsoft 365 plan. Certain circumstances, such as scheduled maintenance or force majeure events, may be excluded from SLA calculations.
Understanding SLAs and service credits helps organizations evaluate the reliability of Microsoft 365 services and ensures they can seek appropriate compensation when service levels fall below guaranteed standards.
Service-Level Agreements (SLAs) and Service Credits in Microsoft 365
Why This Topic Is Important
Understanding Service-Level Agreements (SLAs) and service credits is essential for anyone managing Microsoft 365 services in an organization. These concepts define Microsoft's commitment to service availability and outline the compensation process when services fail to meet guaranteed uptime levels. For the MS-900 exam, this topic tests your knowledge of Microsoft's accountability and the financial protections available to customers.
What Are Service-Level Agreements (SLAs)?
A Service-Level Agreement is a formal contract between Microsoft and its customers that specifies the guaranteed level of service uptime. For Microsoft 365 services, Microsoft typically guarantees 99.9% uptime for most services. This means the service should be available and functional 99.9% of the time during any given month.
Key points about SLAs: • They are legally binding commitments from Microsoft • Different services may have different SLA percentages • SLAs define what constitutes downtime and availability • They establish the framework for compensation when guarantees are not met
What Are Service Credits?
Service credits are financial compensation provided to customers when Microsoft fails to meet its SLA commitments. These credits are applied as a percentage discount on your monthly service bill.
Typical service credit structure: • Less than 99.9% but 99% or higher: 25% credit • Less than 99% but 95% or higher: 50% credit • Less than 95%: 100% credit
How Service Credits Work
1. Monitoring: Microsoft tracks service availability continuously 2. Incident Occurrence: When downtime occurs, it is logged and measured 3. Customer Claim: Customers must submit a claim to request service credits 4. Verification: Microsoft verifies the claim against their records 5. Credit Application: Approved credits are applied to future billing cycles
Important: Service credits are not automatic. Customers must actively submit a claim within a specific timeframe, usually within 30 days of the end of the billing month when the incident occurred.
What Service Credits Do NOT Cover
• Scheduled maintenance windows • Issues caused by customer actions or third-party services • Force majeure events (natural disasters, wars, etc.) • Features in preview or beta status
Exam Tips: Answering Questions on SLAs and Service Credits
Key facts to remember: • The standard SLA for most Microsoft 365 services is 99.9% • Service credits must be claimed by the customer - they are not automatic • Credits are applied as percentage discounts on future bills, not cash refunds • The lower the uptime percentage, the higher the credit percentage • Claims must be submitted within the required timeframe
Common exam question patterns: • Questions asking about the uptime guarantee percentage • Scenarios asking whether credits are automatic or require action • Questions about what type of compensation is provided (credits vs. refunds) • Scenarios testing knowledge of excluded situations
Watch out for trick answers: • Options suggesting cash refunds instead of credits • Answers implying automatic credit application • Choices stating 100% uptime guarantees • Options confusing SLAs with support agreements
Quick Reference Summary
• SLA: Microsoft's promise of 99.9% uptime • Service Credits: Bill discounts when SLA is not met • Customer Action Required: Yes, claims must be submitted • Credit Type: Percentage off future bills • Maximum Credit: 100% of monthly service fee