This chapter covers Microsoft 365 Service Level Agreements (SLAs) and service guarantees, a topic that directly maps to MS-900 objective 1.2: 'Describe cloud concepts.' Understanding SLAs is critical because they define the contractual uptime commitments and financial remedies for service outages. Approximately 5-10% of MS-900 exam questions touch on SLA fundamentals, credit calculations, and exclusions. By the end of this chapter, you will know the exact uptime percentages for core services, how to claim service credits, and the common traps Microsoft includes in the fine print.
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Think of a Microsoft 365 SLA as an insurance policy for service availability, but with a twist: instead of paying a premium, you get a service credit if the uptime guarantee is breached. Imagine you run a bakery that depends on a flour supplier. You sign a contract guaranteeing the supplier will deliver flour 99.9% of the time. If they fail, they don't pay you cash—they give you a credit toward your next order. Similarly, Microsoft promises that its services (like Exchange Online) will be available 99.9% of the time in a month. If availability drops below that, you file a claim (submit a support request) and receive a service credit (a percentage of your monthly fee) applied to your next bill. The credit percentage scales with the severity of the outage: a 99.8% uptime might earn a 10% credit, but a 99.0% uptime could earn a 25% credit. Crucially, the credit is not automatic—you must claim it within a specified timeframe, just like an insurance claim. Also, scheduled maintenance and outages beyond Microsoft's control (force majeure) are excluded, similar to policy exclusions. This analogy captures the contractual nature, the credit mechanism, and the claim process of Microsoft 365 SLAs.
What is a Microsoft 365 SLA?
A Service Level Agreement (SLA) is a contractual commitment between Microsoft and the customer regarding the availability of a specific online service. For Microsoft 365, the SLA is documented in the 'Service Level Agreement for Microsoft Online Services,' which applies to services like Exchange Online, SharePoint Online, Microsoft Teams, and OneDrive for Business. The SLA defines the uptime percentage guaranteed for each service, the measurement methodology, the process for claiming credits, and the exclusions.
Why SLAs Matter for MS-900
The MS-900 exam tests your understanding of SLAs as part of the 'Cloud Concepts' domain. You must know:
The standard uptime commitment for core Microsoft 365 services (99.9%).
How service credits are calculated (percentage of monthly fee).
What is excluded from the SLA (scheduled maintenance, force majeure, customer actions).
The process for filing a claim (must be submitted within a specific timeframe).
The difference between 'Financial' and 'Service' credits.
How the SLA Works Internally
Microsoft monitors the availability of each service using its own telemetry. Availability is measured as the percentage of time the service is accessible and functioning correctly over a calendar month. The calculation is:
Monthly Uptime Percentage = (Maximum Available Minutes – Downtime) / Maximum Available Minutes × 100
Maximum Available Minutes: Total minutes in a calendar month (e.g., 43,200 minutes for a 30-day month).
Downtime: Total minutes during which the service is unavailable, as determined by Microsoft's monitoring systems. Unavailability is defined as the inability to access the service or perform core functions (e.g., sending email in Exchange Online).
If the Monthly Uptime Percentage falls below the SLA commitment (99.9% for most services), the customer is eligible for a service credit.
Service Credit Calculation
The service credit is a percentage of the monthly fee paid for the affected service. The credit percentage increases as the uptime decreases: - 99.9% to 99.0% Uptime: 10% credit (for most core services). - 99.0% to 95.0% Uptime: 25% credit. - Below 95.0% Uptime: 100% credit (i.e., the service is free for that month).
For services with a lower SLA (e.g., 99.0% for some non-core services), the thresholds differ. Always check the specific service's SLA.
Claiming Service Credits
Service credits are not automatically applied. The customer must submit a claim within a specified time after the end of the billing month in which the outage occurred. The claim must include:
The affected service and subscription ID.
The dates and times of the outage.
A description of the impact.
Any supporting evidence (e.g., support ticket numbers).
Microsoft reviews the claim and, if valid, applies the credit to the next invoice. The credit is applied as a reduction in the amount due, not as a cash refund.
Exclusions from the SLA
The SLA explicitly excludes downtime caused by: - Scheduled Maintenance: Microsoft performs planned maintenance during defined windows. This downtime is not counted toward the SLA. For critical services, maintenance windows are typically outside business hours. - Force Majeure Events: Natural disasters, war, terrorism, or other events beyond Microsoft's control. - Customer Actions: Actions taken by the customer or their third-party agents that cause downtime, such as misconfiguration, exceeding service quotas, or using unsupported features. - Third-Party Services: Downtime caused by services not provided by Microsoft (e.g., internet connectivity, on-premises infrastructure). - Beta or Preview Services: Services in preview or beta are often excluded from the SLA.
SLA for Different Services
Not all Microsoft 365 services have the same SLA. The core services generally have a 99.9% uptime guarantee. These include:
Exchange Online
SharePoint Online
Microsoft Teams
OneDrive for Business
Microsoft 365 Apps (e.g., Word, Excel)
Some services have a lower SLA, such as:
Microsoft 365 Admin Center: 99.9% (same as core).
Yammer: 99.9%.
Microsoft Bookings: 99.9%.
Microsoft 365 Copilot: 99.9%.
Some advanced compliance or analytics services may have 99.0% or no SLA.
Interaction with Customer Support
If a customer experiences an outage, they should first check the Microsoft 365 Service Health Dashboard in the admin center to confirm if the issue is a known incident. If it is, Microsoft is already working on it. The customer can also open a support request. The SLA for support response times is separate from the service availability SLA. The support SLA defines how quickly Microsoft responds to a support ticket based on severity (e.g., Severity A: 1 hour).
Verification and Monitoring
Customers can monitor service availability using: - Microsoft 365 Admin Center > Health > Service Health: Shows current and past incidents. - Microsoft 365 Service Communications API: Allows programmatic access to service health data. - Message Center: For planned changes and maintenance.
There is no command-line tool to check SLA compliance; it is purely monitored by Microsoft. However, customers can use third-party tools to track uptime independently.
Common Exam Traps
Automatic Credits: The exam may suggest that credits are automatically applied. They are not; you must file a claim.
Cash Refund: Credits are applied to future invoices, not refunded as cash.
99.9% vs 99.99%: Microsoft 365 SLA is 99.9%, not 99.99% (which is typical for Azure infrastructure).
Scheduled Maintenance: It is excluded from the SLA, but Microsoft must provide advance notice (usually 5 days for most services).
Credit Limits: The total credit for a billing month cannot exceed the monthly fee paid for that service.
Summary of Key Values
Standard Uptime Commitment: 99.9%.
Credit Thresholds: 99.9%-99.0% → 10% credit; 99.0%-95.0% → 25% credit; <95.0% → 100% credit.
Claim Deadline: Typically within the billing month after the outage (e.g., for a January outage, claim must be filed by the end of February).
Maximum Credit: Equal to the monthly fee for the affected service.
Step-by-Step Claim Process
Identify the outage through Service Health Dashboard.
Confirm the outage meets SLA criteria (not excluded).
Open a support request to report the outage (optional but recommended).
Wait until the end of the billing month.
Submit a claim via the Microsoft 365 Admin Center or through your account representative.
Include required information (dates, times, impact).
Microsoft reviews and applies credit to next invoice if valid.
Identify Service Outage
The first step is recognizing that a Microsoft 365 service is unavailable. This can be done by checking the Service Health Dashboard in the Microsoft 365 Admin Center (https://admin.microsoft.com/Adminportal/Home#/servicehealth). The dashboard shows current incidents and historical data. Alternatively, users may report issues via support tickets. It's important to note that the SLA defines 'unavailability' as the inability to access the service or perform core functions. For example, if Exchange Online is accessible but email delivery is delayed, that may not count as downtime unless it exceeds a threshold. Microsoft's telemetry determines whether an outage qualifies as downtime for SLA purposes.
Verify SLA Eligibility
Not all outages are covered by the SLA. You must check if the downtime is due to an excluded event, such as scheduled maintenance, force majeure, or customer actions. For scheduled maintenance, Microsoft provides advance notice (usually 5 days). If the outage is caused by a third-party service (e.g., your ISP) or your own misconfiguration (e.g., wrong DNS settings), it is not covered. Also, if the service is in preview or beta, it may have no SLA. You can verify the service's SLA status in the 'Service Level Agreement for Microsoft Online Services' document.
Document Outage Details
To file a successful claim, you need precise records. Note the start and end times of the outage in UTC. If possible, capture screenshots of the Service Health Dashboard showing the incident. Also, record the affected service, subscription ID, and the number of users impacted. If you opened a support ticket, include the ticket number. The claim must be submitted within a specific timeframe (typically within the billing month following the outage). For example, if the outage occurred in January, you must submit the claim by the end of February.
Submit Service Credit Claim
Submit the claim through the Microsoft 365 Admin Center. Navigate to Billing > Subscriptions, select the affected subscription, and look for a link to request a service credit. Alternatively, you can contact your Microsoft account representative or open a support request with the details. The claim must include the information documented in step 3. Microsoft will review the claim and calculate the credit based on the Monthly Uptime Percentage. The credit is applied as a reduction on the next invoice. Note that the maximum credit for a single month cannot exceed the monthly fee paid for that service.
Receive and Verify Credit
After Microsoft approves the claim, the service credit appears on the next invoice. You can verify the credit by checking the invoice in the Billing section of the admin center. The credit will be listed as a line item, typically with a description like 'Service Credit – SLA'. If the credit does not appear within two billing cycles, you should follow up with Microsoft support. Keep records of the claim submission for audit purposes. The credit is not a cash refund; it reduces the amount you owe for the next month.
Scenario 1: Enterprise Email Outage
A large enterprise with 10,000 Exchange Online mailboxes experiences a 4-hour outage during business hours. The monthly uptime for Exchange Online drops to 99.5% (assuming a 30-day month: 43,200 total minutes, 240 minutes downtime = 99.44%). The SLA commitment is 99.9%. The enterprise pays $20,000/month for Exchange Online. The credit is 10% (since uptime is between 99.0% and 99.9%). So they receive a $2,000 credit on the next invoice. The IT team must file the claim within the next billing month. They use the Service Health Dashboard to confirm the incident was logged by Microsoft. They submit the claim with the incident ID and billing details. The credit is applied automatically after review.
Scenario 2: Scheduled Maintenance Misunderstanding
A small business sees a 2-hour outage on a Saturday night. They check the Service Health Dashboard and see it was scheduled maintenance. They are unhappy but cannot claim a credit because scheduled maintenance is excluded. However, they could have checked the Message Center earlier for the maintenance notice. The business learns to monitor the Message Center for planned changes. This scenario highlights the importance of understanding exclusions.
Scenario 3: Customer Misconfiguration
A company accidentally changes a DNS record that breaks Microsoft Teams connectivity. The outage lasts 6 hours. They file an SLA claim, but Microsoft denies it because the downtime was caused by customer action. The company must fix the DNS configuration themselves. This emphasizes that the SLA does not cover issues caused by the customer. The company should have implemented change control processes to prevent such misconfigurations.
Common Misconfigurations and Issues
Not filing claims within the deadline (e.g., waiting too long).
Assuming all services have the same SLA (e.g., some add-ons may have 99.0%).
Not documenting outages properly (e.g., no timestamps).
Relying on automatic credits (they are not automatic).
MS-900 Objective 1.2: Cloud Concepts
This section directly tests your understanding of SLAs. The exam expects you to:
Identify the standard uptime percentage for core Microsoft 365 services (99.9%).
Recognize that service credits are not automatic and must be claimed.
Know the credit percentages: 10%, 25%, 100%.
Understand exclusions: scheduled maintenance, force majeure, customer actions, third-party issues.
Know the claim timeframe: typically within the billing month after the outage.
Common Wrong Answers
'Service credits are automatically applied.' This is false. Credits must be claimed. Many candidates choose this because they think Microsoft automatically compensates.
'The SLA guarantees 99.99% uptime.' This is the Azure infrastructure SLA, not Microsoft 365. The exam may try to confuse you with higher percentages.
'You can get a cash refund.' Credits are applied to future invoices, not refunded as cash.
'All Microsoft 365 services have a 99.9% SLA.' Some services have lower SLAs or none (e.g., preview services).
'Scheduled maintenance is covered by the SLA.' It is explicitly excluded.
Specific Exam Values
99.9%: Standard uptime.
10% credit: For uptime between 99.0% and 99.9%.
25% credit: For uptime between 95.0% and 99.0%.
100% credit: For uptime below 95.0%.
Claim deadline: Usually within the billing month after the outage.
Maximum credit: Equal to the monthly fee.
Edge Cases
What if the outage spans two billing months? The claim is based on the month in which the outage occurred. If it crosses, you may need to file separate claims.
What if multiple services are affected? You can file a single claim covering all affected services, but you must provide details for each.
What if you are on an annual plan? The credit is still a percentage of the monthly fee. For annual plans, the monthly fee is calculated as the annual fee divided by 12.
Eliminating Wrong Answers
When you see an answer that says 'automatic' or 'cash refund,' eliminate it immediately. If the uptime percentage is 99.99%, it's likely wrong for M365. If it mentions 'all services have the same SLA,' it's probably incorrect. Use the mechanism: the SLA is a contractual guarantee with a claim process, not an automatic payout.
The standard Microsoft 365 SLA guarantees 99.9% uptime for core services.
Service credits are not automatic; you must file a claim within the next billing month.
Credit percentages: 10% for 99.0-99.9% uptime, 25% for 95.0-99.0%, 100% for <95%.
Scheduled maintenance, force majeure, and customer-caused outages are excluded from the SLA.
The maximum service credit for a month cannot exceed the monthly fee paid for that service.
Always check the specific SLA for each service, as some have lower commitments or are excluded.
Use the Service Health Dashboard to monitor outages and verify incidents before filing a claim.
The SLA is a contractual commitment; Microsoft's telemetry determines uptime, not customer measurements.
These come up on the exam all the time. Here's how to tell them apart.
Microsoft 365 SLA
Standard uptime commitment is 99.9% for core services.
Credits are a percentage of the monthly fee: 10%, 25%, or 100%.
Credits must be claimed within the next billing month.
Excludes scheduled maintenance, force majeure, customer actions.
Applies to SaaS services like Exchange Online, Teams, SharePoint.
Azure SLA
Uptime commitment varies by service; often 99.95% or 99.99% for VMs.
Credits are a percentage of the monthly fee: 10%, 25%, or 100% (similar structure).
Credits must be claimed within the next billing month.
Excludes scheduled maintenance, force majeure, customer actions.
Applies to IaaS and PaaS services like VMs, SQL Database, App Service.
Mistake
Service credits are automatically applied to your bill.
Correct
Credits are not automatic. You must submit a claim within a specific timeframe (typically the next billing month). Microsoft reviews the claim and, if valid, applies the credit to the next invoice.
Mistake
The Microsoft 365 SLA guarantees 99.99% uptime.
Correct
The standard SLA for core Microsoft 365 services is 99.9% uptime. 99.99% is the SLA for Azure infrastructure services like virtual machines, not for SaaS services like Exchange Online.
Mistake
All Microsoft 365 services have the same 99.9% SLA.
Correct
While most core services have 99.9%, some services have a lower SLA (e.g., 99.0%) or no SLA at all (e.g., preview services). Always check the specific service's SLA documentation.
Mistake
Scheduled maintenance is included in the SLA uptime calculation.
Correct
Scheduled maintenance is explicitly excluded from the SLA. Microsoft provides advance notice (usually 5 days) for planned maintenance, and this downtime does not count toward the uptime guarantee.
Mistake
Service credits can be redeemed as cash refunds.
Correct
Service credits are applied as a reduction to future invoices. They are not cash refunds and cannot be redeemed for cash. The credit reduces the amount you owe for the next billing period.
Reveal each answer, then mark whether you got it right. Score 60%+ to unlock the next chapter.
The standard uptime commitment for core Microsoft 365 services (Exchange Online, SharePoint Online, Teams, OneDrive for Business) is 99.9%. This means Microsoft guarantees the service will be available 99.9% of the time in a calendar month. If the uptime falls below this threshold, you may be eligible for a service credit. Note that some services have different SLAs, so always check the specific service's documentation.
To claim a service credit, you must submit a request through the Microsoft 365 Admin Center or contact your account representative. The claim must include details of the outage, such as dates, times, affected service, and subscription ID. You must submit the claim within the billing month following the outage. For example, if the outage occurred in January, you must file the claim by the end of February. Microsoft reviews the claim and, if valid, applies the credit to your next invoice.
The SLA excludes downtime caused by scheduled maintenance (with advance notice), force majeure events (e.g., natural disasters, war), customer actions (e.g., misconfiguration, exceeding quotas), third-party services (e.g., internet connectivity), and beta/preview services. Also, downtime due to factors outside Microsoft's reasonable control is excluded. Always review the full SLA document for a complete list.
No. Service credits are applied as a reduction to future invoices, not as cash refunds. The credit reduces the amount you owe for the next billing period. If you have an annual subscription, the credit is calculated based on the monthly equivalent of the annual fee. You cannot receive cash for SLA violations.
Microsoft measures downtime using its own telemetry systems. Downtime is defined as the period during which the service is unavailable to perform core functions. The Monthly Uptime Percentage is calculated as (Maximum Available Minutes – Downtime) / Maximum Available Minutes × 100. Maximum Available Minutes is the total minutes in the calendar month. Microsoft's monitoring determines when an outage begins and ends. Customer-side monitoring is not used for SLA calculations.
No. While most core services (Exchange Online, SharePoint Online, Teams, OneDrive for Business) have a 99.9% SLA, some services have lower SLAs (e.g., 99.0%) or no SLA at all (e.g., services in preview or beta). Always refer to the 'Service Level Agreement for Microsoft Online Services' document for the specific SLA of each service.
If an outage spans multiple billing months, you may need to file separate claims for each month. The SLA is calculated on a monthly basis. For example, an outage that starts on January 31 and ends on February 1 would affect both January and February uptime calculations. You would file a claim for January (if the January uptime dropped below 99.9%) and another for February (if applicable).
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