What is SLA & KPI? Explain the 5 differences between them.

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Accepted Answer

SLA stands for Service Level Agreement and KPI stands for Key Performance Indicator. They are both important metrics in measuring performance.

SLA is a contract between a service provider and a customer, outlining the level of service expected. KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives.
SLA focuses on the agreed upon level of service, while KPI focuses on performance indicators.
SLA is usually a part of a contract, while KPI is used to measure performance internally.
SLA is more specific and detailed, while KPI is broader and can cover various aspects of performance.
SLA is often tied to penalties or rewards based on performance, while KPI is used for monitoring and improving performance.

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