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NoSQL Databases Explained: Types, Use Cases & Core Characteristics

NoSQL Databases Explained: Types, Use Cases & Core Characteristics
Hostman Team
Technical writer
Infrastructure

NoSQL (which stands for "Not Only SQL") represents a new class of data management systems that deviate from the traditional relational approach to information storage. Unlike conventional DBMSs, such as MySQL or PostgreSQL, which store data in tables with fixed structures and strict relationships, NoSQL offers more flexible methods for organizing and storing information. This technology doesn't reject SQL; rather, it expands the ways to handle data.

The origin of the term NoSQL has an interesting backstory that began not with technology but with the name of a tech conference. In 2009, organizers of a database event in San Francisco adopted the term, and it unexpectedly caught on in the industry. Interestingly, a decade earlier, in 1998, developer Carlo Strozzi had already used the term "NoSQL" for his own project, which had no connection to modern non-relational systems.

Modern NoSQL databases fall into several key categories of data storage systems. These include:

  • Document-oriented databases (led by MongoDB)
  • Key-value stores (e.g., Redis)
  • Graph databases (Neo4j is a prominent example)
  • Column-family stores (such as ClickHouse)

The unifying feature among these systems is their rejection of the classic SQL language in favor of proprietary data processing methods.

Unlike relational DBMSs, where SQL serves as a standardized language for querying and joining data through operations like JOIN and UNION, NoSQL databases have developed their own query languages. Each NoSQL database offers a unique syntax for manipulating data. Here are some examples:

// MongoDB (uses a JavaScript-like syntax):
db.users.find({ age: { $gt: 21 } })

// Redis (uses command-based syntax):
HGET user:1000 email
SET session:token "abc123"

NoSQL databases are particularly efficient in handling large volumes of unstructured data. A prime example is the architecture of modern social media platforms, where MongoDB enables storage of a user's profile, posts, responses, and activity in a single document, thereby optimizing data retrieval performance.

NoSQL vs SQL: Relational and Non-Relational Databases

The evolution of NoSQL databases has paralleled the growing complexity of technological and business needs. The modern digital world, which generates terabytes of data every second, necessitated new data processing approaches. As a result, two fundamentally different data management philosophies have emerged:

  1. Relational approach, focused on data integrity and reliability
  2. NoSQL approach, prioritizing adaptability and scalability

Each concept is grounded in its own core principles, which define its practical applications.

Relational systems adhere to ACID principles:

  • Atomicity ensures that transactions are all-or-nothing.
  • Consistency guarantees that data remains valid throughout.
  • Isolation keeps concurrent transactions from interfering.
  • Durability ensures that once a transaction is committed, it remains so.

NoSQL systems follow the BASE principles:

  • Basically Available – the system prioritizes continuous availability.
  • Soft state – the system state may change over time.
  • Eventually consistent – consistency is achieved eventually, not instantly.

Key Differences:

Aspect

Relational Databases

NoSQL Databases

Data Organization

Structured in predefined tables and schemas

Flexible format, supports semi-structured/unstructured data

Scalability

Vertical (via stronger servers)

Horizontal (adding more nodes to the cluster)

Data Integrity

Maintained at the DBMS core level

Managed at the application level

Performance

Efficient for complex transactions

High performance in basic I/O operations

Data Storage

Distributed across multiple interrelated tables

Groups related data into unified blocks/documents

These fundamental differences define their optimal use cases:

  • Relational systems are irreplaceable where data precision is critical (e.g., financial systems).
  • NoSQL solutions excel in processing high-volume data flows (e.g., social media, analytics platforms).

Key Features and Advantages of NoSQL

Most NoSQL systems are open source, allowing developers to explore and modify the core system without relying on expensive proprietary software.

Schema Flexibility

One of the main advantages of NoSQL is its schema-free approach. Unlike relational databases, where altering the schema often requires modifying existing records, NoSQL allows the dynamic addition of attributes without reorganizing the entire database.

// MongoDB: Flexible schema supports different structures in the same collection
db.users.insertMany([
  { name: "Emily", email: "emily@email.com" },
  { name: "Maria", email: "maria@email.com", phone: "+35798765432" },
  { name: "Peter", social: { twitter: "@peter", facebook: "peter.fb" } }
])

Horizontal Scalability

NoSQL databases employ a fundamentally different strategy for boosting performance. While traditional relational databases rely on upgrading a single server, NoSQL architectures use distributed clusters. Performance is improved by adding nodes, with workload automatically balanced across the system.

Sharding and Replication

NoSQL databases support sharding—a method of distributing data across multiple servers. Conceptually similar to RAID 0 (striping), sharding enables:

  • Enhanced system performance
  • Improved fault tolerance
  • Efficient load distribution

High Performance

NoSQL systems offer exceptional performance due to optimized storage mechanisms and avoidance of resource-heavy operations like joins. They perform best in scenarios such as:

  • Basic read/write operations
  • Large-scale data management
  • Concurrent user request handling
  • Unstructured data processing

Handling Unstructured Data

NoSQL excels in working with:

  • Large volumes of unstructured data
  • Heterogeneous data types
  • Rapidly evolving data structures

Support for Modern Technologies

NoSQL databases integrate well with:

  • Cloud platforms
  • Microservice architectures
  • Big Data processing systems
  • Modern development frameworks

Cost Efficiency

NoSQL solutions can be cost-effective due to:

  • Open-source licensing
  • Efficient use of commodity hardware
  • Scalability using standard servers
  • Reduced administrative overhead

Main Types of NoSQL Databases

In modern distributed system development, several core types of NoSQL solutions are distinguished, each with a mature ecosystem and strong community support.

Document-Oriented Databases

Document-based systems are the most mature and widely adopted type of NoSQL databases. MongoDB, the leading technology in this segment, is the benchmark example of document-oriented data storage architecture.

Data Storage Principle

In document-oriented databases, information is stored as documents grouped into collections. Unlike relational databases, where data is distributed across multiple tables, here, all related information about an object is contained within a single document.

Example of a user document with orders:

{
  "_id": ObjectId("507f1f77bcf86cd799439011"),
  "user": {
    "username": "stephanie",
    "email": "steph@example.com",
    "registered": "2024-02-01"
  },
  "orders": [
    {
      "orderId": "ORD-001",
      "date": "2024-02-02",
      "items": [
        {
          "name": "Phone",
          "price": 799.99,
          "quantity": 1
        }
      ],
      "status": "delivered"
    }
  ],
  "preferences": {
    "notifications": true,
    "language": "en"
  }
}

Basic Operations with MongoDB

// Insert a document
db.users.insertOne({
  username: "stephanie",
  email: "steph@example.com"
})

// Find documents
db.users.find({ "preferences.language": "en" })

// Update data
db.users.updateOne(
  { username: "stephanie" },
  { $set: { "preferences.notifications": false }}
)

// Delete a document
db.users.deleteOne({ username: "stephanie" })

Advantages of the Document-Oriented Approach

Flexible Data Schema

  • Each document can have its own structure
  • Easy to add new fields
  • No need to modify the overall database schema

Natural Data Representation

  • Documents resemble programming objects
  • Intuitive structure
  • Developer-friendly

Performance

  • Fast retrieval of complete object data
  • Efficient handling of nested structures
  • Horizontal scalability

Working with Hierarchical Data

  • Naturally stores tree-like structures
  • Convenient nested object representation
  • Effective processing of complex structures

Use Cases

The architecture is particularly effective in:

  • Developing systems with dynamically evolving data structures
  • Processing large volumes of unstandardized data
  • Building high-load distributed platforms

Typical Use Scenarios

  • Digital content management platforms
  • Distributed social media platforms
  • Enterprise content organization systems
  • Event aggregation and analytics services
  • Complex analytical platforms

Key-Value Stores

Among key-value stores, Redis (short for Remote Dictionary Server) holds a leading position in the NoSQL market. A core architectural feature of this technology is that the entire data set is stored in memory, ensuring exceptional performance.

Working Principle

The architecture of key-value stores is based on three fundamental components for each data record:

  • Unique key (record identifier)
  • Associated data (value)
  • Optional TTL (Time To Live) parameter

Data Types in Redis

# Strings
SET user:name "Stephanie"
GET user:name

# Lists
LPUSH notifications "New message"
RPUSH notifications "Payment received"

# Sets
SADD user:roles "admin" "editor"
SMEMBERS user:roles

# Hashes
HSET user:1000 name "Steph" email "steph@example.com"
HGET user:1000 email

# Sorted Sets
ZADD leaderboard 100 "player1" 85 "player2"
ZRANGE leaderboard 0 -1

Key Advantages

High Performance

  • In-memory operations
  • Simple data structure
  • Minimal overhead

Storage Flexibility

  • Support for multiple data types
  • Ability to set data expiration
  • Atomic operations

Reliability

  • Data persistence options
  • Master-slave replication
  • Clustering support

Typical Use Scenarios

Caching

# Cache query results
SET "query:users:active" "{json_result}"
EXPIRE "query:users:active" 3600  # Expires in one hour

Counters and Rankings

# Increase view counter
INCR "views:article:1234"

# Update ranking
ZADD "top_articles" 156 "article:1234"

Message Queues

# Add task to queue
LPUSH "task_queue" "process_order:1234"

# Get task from queue
RPOP "task_queue"

Redis achieves peak efficiency when deployed in systems with intensive operational throughput, where rapid data access and instant processing are critical. A common architectural solution is to integrate Redis as a high-performance caching layer alongside the primary data store, significantly boosting the overall application performance.

Graph Databases

Graph DBMS (Graph Databases) stand out among NoSQL solutions due to their specialization in managing relationships between data entities. In this segment, Neo4j has established a leading position thanks to its efficiency in handling complex network data structures where relationships between objects are of fundamental importance.

Core Components

Nodes

  • Represent entities
  • Contain properties
  • Have labels

Relationships

  • Connect nodes
  • Are directional
  • Can contain properties
  • Define the type of connection

Example of a Graph Model in Neo4j

// Create nodes
CREATE (anna:Person { name: 'Anna', age: 30 })
CREATE (mary:Person { name: 'Mary', age: 28 })
CREATE (post:Post { title: 'Graph Databases', date: '2024-02-04' })

// Create relationships
CREATE (anna)-[:FRIENDS_WITH]->(mary)
CREATE (anna)-[:AUTHORED]->(post)
CREATE (mary)-[:LIKED]->(post)

Typical Queries

// Find friends of friends
MATCH (person:Person {name: 'Anna'})-[:FRIENDS_WITH]->(friend)-[:FRIENDS_WITH]->(friendOfFriend)
RETURN friendOfFriend.name

// Find most popular posts
MATCH (post:Post)<-[:LIKED]-(person:Person)
RETURN post.title, count(person) as likes
ORDER BY likes DESC
LIMIT 5

Key Advantages

Natural Representation of Relationships

  • Intuitive data model
  • Efficient relationship storage
  • Easy to understand and work with

Graph Traversal Performance

  • Fast retrieval of connected data
  • Efficient handling of complex queries
  • Optimized for recursive queries

Practical Applications

Social Networks

// Friend recommendations
MATCH (user:Person)-[:FRIENDS_WITH]->(friend)-[:FRIENDS_WITH]->(potentialFriend)
WHERE user.name = 'Anna' AND NOT (user)-[:FRIENDS_WITH]->(potentialFriend)
RETURN potentialFriend.name

Recommendation Systems

// Recommendations based on interests
MATCH (user:Person)-[:LIKES]->(product:Product)<-[:LIKES]-(otherUser)-[:LIKES]->(recommendation:Product)
WHERE user.name = 'Anna' AND NOT (user)-[:LIKES]->(recommendation)
RETURN recommendation.name, count(otherUser) as frequency

Routing

// Find shortest path
MATCH path = shortestPath(
  (start:Location {name: 'A'})-[:CONNECTS_TO*]->(end:Location {name: 'B'})
)
RETURN path

Usage Highlights

  • Essential when working with complex, interrelated data structures
  • Maximum performance in processing cyclic and nested queries
  • Enables flexible design and management of multi-level relationships

Neo4j and similar platforms for graph database management show exceptional efficiency in systems where relationship processing and deep link analysis are critical. These tools offer advanced capabilities for managing complex network architectures and detecting patterns in structured sets of connected data.

Columnar Databases

The architecture of these systems is based on column-oriented storage of data, as opposed to the traditional row-based approach. This enables significant performance gains for specialized queries. Leading solutions in this area include ClickHouse and HBase, both recognized as reliable enterprise-grade technologies.

How It Works

Traditional (row-based) storage:

Row1: [id1, name1, email1, age1]  
Row2: [id2, name2, email2, age2]

Column-based storage:

Column1: [id1, id2]  
Column2: [name1, name2]  
Column3: [email1, email2]  
Column4: [age1, age2]

Key Characteristics

Storage Structure

  • Data is grouped by columns
  • Efficient compression of homogeneous data
  • Fast reading of specific fields

Scalability

  • Horizontal scalability
  • Distributed storage
  • High availability

Example Usage with ClickHouse

-- Create table
CREATE TABLE users (
    user_id UUID,
    name String,
    email String,
    registration_date DateTime
) ENGINE = MergeTree()
ORDER BY (registration_date, user_id);

-- Insert data
INSERT INTO users (user_id, name, email, registration_date)
VALUES (generateUUIDv4(), 'Anna Smith', 'anna@example.com', now());

-- Analytical query
SELECT 
    toDate(registration_date) as date,
    count(*) as users_count
FROM users 
GROUP BY date
ORDER BY date;

Key Advantages

Analytical Efficiency

  • Fast reading of selected columns
  • Optimized aggregation queries
  • Effective with large datasets

Data Compression

  • Superior compression of uniform data
  • Reduced disk space usage
  • I/O optimization

Typical Use Cases

Big Data

-- Log analysis with efficient aggregation
SELECT 
    event_type,
    count() as events_count,
    uniqExact(user_id) as unique_users
FROM system_logs 
WHERE toDate(timestamp) >= '2024-01-01'
GROUP BY event_type
ORDER BY events_count DESC;

Time Series

-- Aggregating metrics by time intervals
SELECT 
    toStartOfInterval(timestamp, INTERVAL 5 MINUTE) as time_bucket,
    avg(cpu_usage) as avg_cpu,
    max(cpu_usage) as max_cpu,
    quantile(0.95)(cpu_usage) as cpu_95th
FROM server_metrics
WHERE server_id = 'srv-001'
    AND timestamp >= now() - INTERVAL 1 DAY
GROUP BY time_bucket
ORDER BY time_bucket;

Analytics Systems

-- Advanced user statistics
SELECT 
    country,
    count() as users_count,
    round(avg(age), 1) as avg_age,
    uniqExact(city) as unique_cities,
    sumIf(purchase_amount, purchase_amount > 0) as total_revenue,
    round(avg(purchase_amount), 2) as avg_purchase
FROM user_statistics
GROUP BY country
HAVING users_count >= 100
ORDER BY total_revenue DESC
LIMIT 10;

Usage Highlights

  • Maximum performance in systems with read-heavy workloads
  • Proven scalability for large-scale data processing
  • Excellent integration in distributed computing environments

Columnar database management systems show exceptional efficiency in projects requiring deep analytical processing of large datasets. This is particularly evident in areas such as enterprise analytics, real-time performance monitoring systems, and platforms for processing timestamped streaming data.

Full-Text Databases (OpenSearch)

The OpenSearch platform, built on the architectural principles of Elasticsearch, is a comprehensive ecosystem for high-performance full-text search and multidimensional data analysis. This solution, designed according to distributed systems principles, stands out for its capabilities in data processing, intelligent search, and the creation of interactive visualizations for large-scale datasets.

Key Features

Full-Text Search

// Search with multilingual support
GET /products/_search
{
  "query": {
    "multi_match": {
      "query": "wireless headphones",
      "fields": ["title", "description"],
      "type": "most_fields"
    }
  }
}

Data Analytics

// Aggregation by categories
GET /products/_search
{
  "size": 0,
  "aggs": {
    "popular_categories": {
      "terms": {
        "field": "category",
        "size": 10
      }
    }
  }
}

Key Advantages

Efficient Search

  • Fuzzy search support
  • Result ranking
  • Match highlighting
  • Autocomplete functionality

Analytical Capabilities

  • Complex aggregations
  • Statistical analysis
  • Data visualization
  • Real-time monitoring

Common Use Cases

E-commerce Search

  • Product search
  • Faceted navigation
  • Product recommendations
  • User behavior analysis

Monitoring and Logging

  • Metrics collection
  • Performance analysis
  • Anomaly detection
  • Error tracking

Analytical Dashboards

  • Data visualization
  • Business metrics
  • Reporting
  • Real-time analytics

OpenSearch is particularly effective in projects that require advanced search and data analytics. At Hostman, OpenSearch is available as a managed service, simplifying integration and maintenance.

When to Choose NoSQL?

The architecture of various database management systems has been developed with specific use cases in mind, so choosing the right tech stack should be based on a detailed analysis of your application's requirements.In modern software development, a hybrid approach is becoming increasingly common, where multiple types of data storage are integrated into a single project to achieve maximum efficiency and extended functionality.

NoSQL systems do not provide a one-size-fits-all solution. When designing your data storage architecture, consider the specific nature of the project and its long-term development strategy.

Choose NoSQL databases when the following matter:

Large-scale Data Streams

  • Efficient handling of petabyte-scale storage
  • High-throughput read and write operations
  • Need for horizontal scalability

Dynamic Data Structures

  • Evolving data requirements
  • Flexibility under uncertainty

Performance Prioritization

  • High-load systems
  • Real-time applications
  • Services requiring high availability

Unconventional Data Formats

  • Networked relationship structures
  • Time-stamped sequences
  • Spatial positioning

Stick with Relational Databases when you need:

Guaranteed Integrity

  • Banking transactions
  • Electronic health records
  • Mission-critical systems

Complex Relationships

  • Multi-level data joins
  • Complex transactional operations
  • Strict ACID compliance

Immutable Structure

  • Fixed requirement specifications
  • Standardized business processes
  • Formalized reporting systems

Practical Recommendations

Hybrid Approach

// Using Redis for caching
// alongside PostgreSQL for primary data
const cached = await redis.get(`user:${id}`);
if (!cached) {
    const user = await pg.query('SELECT * FROM users WHERE id = $1', [id]);
    await redis.set(`user:${id}`, JSON.stringify(user));
    return user;
}
return JSON.parse(cached);

Gradual Transition

  • Start with a pilot project
  • Test performance
  • Evaluate support costs

Decision-Making Factors

Technical Aspects

  • Data volume
  • Query types
  • Scalability requirements
  • Consistency model

Business Requirements

  • Project budget
  • Development timeline
  • Reliability expectations
  • Growth plans

Development Team

  • Technology expertise
  • Availability of specialists
  • Maintenance complexity
Infrastructure

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10 October 2025 · 10 min to read
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Data Processing Unit (DPU): Meaning & How It Works

A DPU is a special type of processor designed for data processing. The abbreviation stands for Data Processing Unit. Technologically, it is a kind of smart network interface card. Its main purpose is to offload the central processing unit (CPU) by taking over part of its workload. To understand why DPUs are important and what potential this technology holds, we need to go back several decades. A Bit of History In the 1990s, the Intel x86 processor, combined with software, provided companies with unprecedented computing power. Client-server computing began to develop, followed by multi-tier architectures and then distributed computing. Organizations deployed application servers, databases, and specialized software, all running on numerous x86 servers. In the early 2000s, hypervisors became widespread. Now, multiple virtual machines could be launched on a single powerful server. Hardware resources were no longer wasted and began to be used efficiently. Thanks to hypervisors, hardware became programmable. Administrators could now write code to automatically detect and initiate virtual machines, forming the foundation of today’s cloud computing paradigm. The next step was network and storage virtualization. As a result, a powerful CPU became the foundation for emulating virtually everything: virtual processors, network cards, and storage interfaces. The downside of this evolution was that pressure on the CPU increased significantly. It became responsible for everything, from running the operating system and applications to managing network traffic, storage I/O operations, security, and more. All system components began competing for CPU resources. The CPU’s functions went far beyond its original purpose. At this point, two major trends emerged: The appearance of specialized hardware for artificial intelligence (AI). The evolution of programmable hardware. CPU, GPU, and DPU AI workloads require parallelism, which cannot be achieved with a general-purpose CPU. Thus, graphics processing units (GPUs) became the driving force behind AI development. Originally designed to accelerate graphics rendering, GPUs evolved into coprocessors for executing complex mathematical operations in parallel. NVIDIA quickly seized this opportunity and released GPUs specifically designed for AI training and inference workloads. GPUs were the first step toward offloading the CPU. They took over mathematical computations. After that, the market saw the emergence of other programmable chips. These microchips are known as application-specific integrated circuits (ASICs) and field-programmable gate arrays (FPGAs), which can be programmed for specific tasks, such as optimizing network traffic or accelerating storage I/O operations. Companies like Broadcom, Intel, and NVIDIA began producing processors that were installed on network cards and other devices. Thanks to GPUs and programmable controllers, the excessive load on the CPU started to decrease. Network functions, storage, and data processing were delegated to specialized hardware. That’s the simplest explanation of what a coprocessor is: a device that shares the CPU’s workload, allowing hardware resources to be used to their full potential. The secret to success is simple: each component does what it does best. Understanding the Architecture Before discussing DPUs, we should first understand what an ASIC processor is and how it relates to network interface cards. Standard and Specialized Network Cards A network card is a device that allows a computer to communicate with other devices on a network. They are also referred to by the abbreviation NIC (Network Interface Controller). At the core of every NIC is an ASIC designed to perform Ethernet controller functions. However, these microchips can also be assigned other roles. The key point is that a standard NIC’s functionality cannot be changed after manufacturing; it performs only the tasks it was designed for. In contrast, SmartNICs have no such limitations. They allow users to upload additional software, making it possible to expand or modify the functionality of the ASIC, without even needing to know how the processor itself is structured. To enable such flexibility, SmartNICs include enhanced computing power and extra memory. These resources can be added in different ways: by integrating multi-core ARM processors, specialized network processors, or FPGAs. DPU Characteristics Data Processing Units are an extension of SmartNICs. Network cards are enhanced with support for NVMe or NVMe over Fabrics (NVMe-oF). A device equipped with an ARM NVMe processor can easily handle input/output operations, offloading the central processor. It’s a simple yet elegant solution that frees up valuable CPU resources. A DPU includes programmable interfaces for both networking and storage. Thanks to this, applications and workloads can access more of the CPU’s performance, which is no longer burdened with routine network and data management tasks. Market Solutions One of the best-known solutions is NVIDIA® BlueField, a DPU line first introduced in 2019, with the third generation announced in 2021. NVIDIA BlueField DPU is designed to create secure, high-speed infrastructure capable of supporting workloads in any environment. Its main advantages include: Zero-trust architecture, ensuring strong security within data centers. Low latency with direct data access. Data transfer speeds up to 400 Gbit/s. SDKs that help developers build high-performance, software-defined, cloud-optimized services accelerated by DPUs using standard APIs. Another company in this space is Pensando, which develops the Distributed Services Card, a data-processing card featuring a DPU. It includes additional ARM cores and hardware accelerators for specific tasks such as encryption and disk I/O processing. Google and Amazon are also developing their own ASIC-based projects: Google TPU (Tensor Processing Unit): a processor designed for machine learning, optimized to run advanced ML models in Google Cloud AI services. AWS Graviton: an ARM-based chip designed to provide the best performance-to-cost ratio for cloud workloads running in Amazon EC2. What’s Next? It is quite possible that the DPU will become the third essential component of future data center servers, alongside the CPU (central processing unit) and GPU (graphics processing unit). This is due to its ability to handle networking and storage tasks. The architecture may look like this: CPU: used for general-purpose computing. GPU: used for accelerating AI applications. DPU: used for processing and transferring data. It appears that DPUs have a promising future, largely driven by the ever-growing volume of data. Coprocessors can breathe new life into existing servers by reducing CPU load and taking over routine operations. This eliminates the need to look for other optimization methods (such as tweaking NVIDIA RAID functions) to boost performance. Estimates suggest that currently, around 30% of CPU workload is consumed by networking functions. Transferring these tasks to a DPU provides additional computing power to the CPU. This can also extend the lifespan of servers by several months or even years, depending on how much CPU capacity was previously dedicated to networking. By adding a DPU to servers, clients can ensure that CPUs are fully utilized for application workloads, rather than being bogged down by routine network and storage access operations. And this looks like a logical continuation of the process that began over 30 years ago, when organizations started building high-performance systems based on a single central processor.
09 October 2025 · 6 min to read
Infrastructure

Service Level Agreement (SLA): Meaning, Metrics, Examples

An SLA is an agreement that defines the level of service a company provides to its customers. This term is usually used in IT and telecommunications.  Unlike standard service contracts, a Service Level Agreement provides a very detailed description of service quality, operating modes, response times to incidents, and other parameters. Main Characteristics of an SLA A Service Level Agreement usually has the following characteristics: Maximum possible transparency of all processes and interactions between the service provider and the client. When drafting the contract, vague wording that could be interpreted ambiguously in one direction or another is avoided. Clearly defined rights and obligations understood by all participants in the agreement. For example, a provider commits to ensuring 99.9% service availability and to pay compensation if a lower figure is recorded, while the client has the right to request that compensation. Expectation management. For instance, a client might expect 24/7, ultra-fast support even for minor issues, while the provider cannot offer such a service. In this case, the client should either lower their expectations or sign a contract with another provider. A third option is also possible: the provider may raise the service level if it benefits their business processes. The agreement specifies the timeframes for fixing issues and solving other problems. It also describes possible compensations that the client may receive if the company fails to meet the declared metrics. An SLA does not always need to be a large document. The main thing is that it clearly describes the core parameters of the service in understandable terms. For example, the AWS S3 SLA is only one page long. It lists monthly uptime percentages and the amount of compensation the client receives if the service fails to meet those thresholds. What is Usually Included in an SLA The example above from Amazon Web Services is not a standard; it is just one possible format tailored to a specific service. An IT SLA often includes the following sections: The procedure for using the service. Responsibilities of both parties, including tools for mutual monitoring of performance. Specific steps for troubleshooting and restoring functionality. The agreement may also specify its term. In some cases, the parties describe in detail the procedure for adding new requirements for functionality or service availability. When describing service quality, its parameters are also disclosed. These typically include: Service availability. Response time to a problem. Time to fix incidents. The SLA may also specify a metric for operating hours. When describing payment procedures, it may indicate the billing model (e.g., pay-as-you-go, fixed rate, etc.). If penalties are provided, the SLA will specify the situations in which the provider must pay them. If the client is entitled to compensation, the SLA also describes the relevant situations and payment procedures. Key SLA Parameters SLA parameters are metrics that can be measured. The agreement should not contain vague phrases like “issues will be resolved quickly, before you even notice.” Such wording is unclear and prevents all participants from organizing proper workflows. For example, the support schedule metric should clearly define when and for which groups of users technical support is available. Suppose a company divides its clients into several groups: Group 1: 24/7 phone and chat support. Group 2: phone and chat support only on weekdays. Group 3: chat-only support on weekdays. Metrics are necessary so that all participants understand which services they receive, when, and in what scope. From this, several key characteristics follow: Metrics must always be publicly available. Their descriptions must be unambiguous for all parties. Clients must be notified in advance about metric changes. When defining metrics, it’s important not to set overly strict requirements, as this significantly increases costs. For instance, suppose a typical specialist can resolve a problem in 4 hours, while a higher-level expert can do it in 2 hours. Writing “2 hours” as the SLA metric is not ideal, as it would immediately make the expert’s work more expensive. If you specify “1 hour,” costs rise further due to the increased risk of penalties for non-compliance. Other important metrics can include response time to a client request. The values may differ depending on the client’s status and problem criticality. For example, a company providing IT outsourcing services might have: Premium clients: response within 15 minutes. Basic clients: response within 24 hours. All of this must be clearly reflected in the SLA. In addition to response time, there’s also incident resolution time. The logic for this parameter is similar: even if a client is important, requests are prioritized based on criticality. For example: If a client’s local office network stops working and all processes halt, that issue must be prioritized. The SLA may state that local network troubleshooting should take no more than 5 hours. If the same client needs to add a few new devices to an already working network, the resolution time may be several hours or even days. The combination of response time and resolution time forms downtime. These and other parameters must be described in the SLA and accepted by all parties before cooperation begins. This approach reduces conflicts; everyone understands what to expect from each other. Service Availability For providers, one of the most important SLA parameters is service availability. It is usually measured in days, hours, or minutes over an agreed period. For example, a provider guarantees that a cloud computing service will be available 99.99% of the time during a year. At first glance, the difference between SLA 99 and SLA 100 may seem small. But in absolute terms, it’s significant. At 99%, you agree that servers may be down up to 4 days per year. At 100%, downtime should be zero—something no company can guarantee. That’s why SLAs are usually written with “nines”: e.g., 99.9%, 99.99%, etc. For example, Hostman.com guarantees 99.98% uptime, meaning total annual downtime will not exceed 1 hour 45 minutes. Some providers promise “five nines”: 99.999% uptime, or less than 15 minutes of downtime per year. But this is not always the best option. Two points to consider: The higher the SLA percentage, the higher the cost. Not every client needs such a high level. In most cases, 99.982% uptime (or slightly higher) is sufficient. It’s important to check not only the number of nines but also the time unit used for measurement. By default, SLA indicators are calculated annually. For example, 99.95% availability equals no more than 4.5 hours of downtime per year. If the contract doesn’t explicitly say that the time unit is “per year,” be sure to clarify, as some providers disguise monthly values as annual. Another key concept is aggregate availability, which equals the lowest of all measured values. Benefits of an SLA Signing and adhering to an SLA benefits both parties. For the company, it defines obligations and protects against unreasonable client demands, such as urgently fixing a minor issue in the middle of the night. Other benefits include: The provider can use the SLA to organize both external and internal processes, such as introducing different support levels depending on service criticality and client importance. Clients gain clarity about what services they can expect, in what timeframes, and in what order, helping them plan their core operations. SLA vs. SLO: What’s the Difference An SLA can also be viewed as an indicator of user satisfaction, ranging from 0% to 100%. Absolute satisfaction (100%) is impossible, just as it’s impossible to guarantee 100% uptime. Therefore, when choosing metrics, one should be realistic and select achievable values. For example, if your team doesn’t provide 24/7 support, you shouldn’t promise it. When the team expands, you can update the SLA and delight clients by offering round-the-clock assistance. To monitor service levels internally, another system is used: SLO (Service Level Objective). These are the target values the provider aims to achieve. Example: Current capabilities are handling 50 tickets per business day, working 9:00 to 18:00, five days a week. These metrics are fixed in the SLA and shown to clients. Meanwhile, the SLO document sets internal goals, for example, increasing the number of handled tickets to 75 per day or switching to 24/7 support. This directly affects the company’s future service level. How to Create a Proper SLA Start with a descriptive section, which usually includes: A glossary System description Participant roles (users, support specialists) Boundaries of operation: geography, time, functionality The next section describes the services provided, giving the client a full understanding of what they can expect when signing with the provider. Then comes the main section, describing the service level. It should include metrics that reflect quality and are easily measurable, as well as metric values that are specific numbers guiding all participants. You can end the SLA with references to other documents that regulate service processes. At all stages of preparing an SLA, remember: it is a regulatory document. Its main goal is control. The more control over the process, the better the SLA. If there is no control, such an agreement is meaningless. Checklist: What to Consider When Preparing an SLA If you are not signing but drafting an SLA to offer clients, pay attention to the following points: Users. In large systems, divide users into groups and manage them separately. This helps allocate resources efficiently and avoid overload from different client types. Services. Consider the criticality of each service for each client group. Example: You provide a CRM to trading companies. If they can’t use it, they lose money and complain, meaning it’s a high-criticality service. Printer replacement or user account creation can wait until tomorrow. Service quality parameters. They must align with business goals and client needs. A typical example is incident resolution times, e.g., 24/7 support versus 9 a.m. to 5 p.m. on weekdays only. An SLA is a document that must be announced to all users whenever it is introduced or updated, regardless of privilege level or service criticality. SLA is a management tool that constantly evolves. You may find that current quality parameters harm business processes or no longer meet client expectations. In that case, management should decide to optimize processes or improve services. The main goal of SLA indicators is not to attract users but to ensure open dialogue with them. Every participant accepts the agreement and commits to following it. Violation of an SLA is grounds to claim compensation and terminate cooperation.
09 October 2025 · 9 min to read

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