When it comes to addressing breaches in Service Level Agreements (SLAs), two main forms of compensation prevail: service credits and penalty payments. Major cloud providers like AWS and Azure typically opt for the former method, providing service credits as the primary remedy for SLA violations.
Service credits are calculated as a percentage of the monthly fees paid by the customer, which are then credited back to their account following a confirmed breach of service levels. This method is uniformly applied across various service models under the SLAs reviewed, establishing service credits as the exclusive form of compensation for unmet service commitments. Notably, the specific calculation of these credits can vary significantly from one provider to another, reflecting different approaches to quantifying the impact of service disruptions on users.