What is a Service Level Objective (SLO)?

A Service Level Objective (SLO) is an internal, measurable target for a service’s performance, availability, or quality. It represents the engineering team’s commitment to how well the service should perform for users or customers.

SLOs are typically defined with metrics such as Uptime (e.g., 99.9%), latency (e.g., 95% of requests finish in under 300 ms), or throughput.

Why SLOs Matter as Much as SLAs

• Foundation for SLAs: SLOs are usually set slightly more stringent than the customer-facing SLA, creating a safety buffer so contractual commitments are met.
• Drives Alerting: SLOs provide the context for critical alerts. Notifications should fire when the SLO is close to breach, helping combat alert fatigue.
• Enables the Error Budget: SLOs define the Error Budget, the allowable downtime or failures over a period. When the error budget is depleted, you know you need to slow feature work and focus on reliability.

Common Challenges

• Overly Aggressive Targets: Setting numbers that are technologically or financially unrealistic creates constant stress and burnout.
• Measurement Misalignment: Measuring SLOs with infrastructure metrics (e.g., CPU load) only instead of user-centric signals (e.g., checkout success rate) gives a false sense of reliability.
• Treating SLOs Like SLAs: Using them as contractual penalties rather than as operational signals for internal improvement.

How to Set the Right SLO

• Focus on User Journeys: Base SLOs on the most critical interactions (login API latency, purchase success rate) instead of low-level component health.
• Define the SLI First: Identify the Service Level Indicator (SLI), your trackable metric, before locking the objective.
• Use the Error Budget to Prioritize: When the budget is healthy, ship features; when it is nearly spent, pivot to reliability and bug fixes to stay within the SLO.