Get a Data Center Services Contract Tailored to Your Business


Building and managing data centers is a costly endeavor. Companies frequently choose data center services due to financial constraints. However, it is critical to pay close attention to how the service level agreement (SLA) develops as you engage in a contract with your service provider. To ensure that the services meet the level of your business requirements, you must be aware of the scope that the SLA provides. To create a contract that works for you, you must conduct thorough research.

Analyzing the data center services contract

Examine all of the documents connected to the SLA thoroughly. The SLA should be included in the master agreement and identify the service to be delivered by the vendor, availability parameters, a description of the vendor’s response, and an escalation and remediation mechanism if SLA conditions are not fulfilled. In the case of data center services, SLAs may cover a wide range of issues. This may include data center environmental controls such as temperature and humidity, managed power distribution, managed services such as servers, virtual machines, backup services, technical support and so on. The service level agreement will be subject to multiple rounds of assessments and comments. You can make necessary modifications to the SLA and negotiate the contract value with the service provider.

Negotiation scope in a data center services contract

The definitions of availability or uptime in the SLA allow the most room for negotiation and dialogue of all the factors in the SLA. Environmental elements influencing uptime, such as temperature and air quality, and the period that you can be “out of range” before it qualifies as an “event”, can be defined collaboratively by the customer and the provider. Ensure that your actions do not create any circumstances in which the service provider could hold you liable for an SLA violation. This could put you in a bind and prompt undesirable actions on the vendor’s end. The credit process is another aspect that the client must fully comprehend to avoid any mistakes regarding monetary compensation.

Recognizing and addressing issuesRecognizing and addressing issues

Negotiating a data center services SLA necessitates a thorough understanding of the vendor’s terms. Do not fall for some service provider’s exaggerated claims; instead, try to read the fine print and obtain an SLA that gives you the most benefits. For example, a vendor may promise a 1000 percent service credit if specific SLA requirements are not met. However, the fundamental premise of any SLA is that service credits will never exceed what you pay for the contractual services. You can, however, negotiate the minimum credits that you will be entitled to if there is downtime. Examine the contract termination options as well. With service implementations, the client’s thorough comprehension of the SLA is critical.


Many businesses now use data center services to develop a solid IT infrastructure and free up resources to focus on their core business. However, it is critical to customize the contract to achieve the degree of service that you require for your firm.

For more information on data center services contracts, visit CFBTEL online or call us today at (800) 211-6155.