Importance of SLA in Cloud Computing

Cloud computing can be thought of as service provider that involves delivering hosted services over the Internet. It does not mean handling of the application using local or personal resources nor using the dedicated network to provide service like office or home network. Consumers and providers both need to face some challenges in spite of accessing many utilities as a process in cloud computing. Service level agreement (SLA) is a common legal document where both the party needs to agree to the terms and conditions for provisioning and consuming the service. Hence, SLA plays a major role in cloud computing in order to access service as expected with a few realistic limitations. The objective of this paper is to explain briefly the importance of SLA in cloud computing along with phases of its lifecycle, template, and parameters. This paper also proposes sample SLA template on which basis service provisioning and monitoring being carried out successfully.