Contracts

What is a DNO and why do I need it?

A Service Level Agreement (SLA) is the same as a Service Level Agreement: a contract in which you specify which services a provider delivers, what quality standards they must meet, and what happens if that level...

Published on April 3, 2023 by MKBjuristen.nl
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A Service Level Agreement (DNO) is the same as a Service Level Agreement (SLA): a contract in which you specify which services a provider delivers, what quality standards they must meet, and what happens if that level is not met. “DNO” is simply the Dutch translation of SLA. A good DNO prevents misunderstandings, dissatisfaction, and legal proceedings. Below, you can read what a DNO entails and why it requires a custom approach.

What is a DNO?

A Service Level Agreement is an agreement between a service provider and a customer in which expectations regarding the services provided are carefully set out. It clearly establishes the agreements between both parties, thereby minimizing the risk of misunderstandings, dissatisfaction, and disputes.

What is the difference between a DNO and an SLA?

A frequently asked question. The short answer: there is no substantive difference. A Service Level Agreement (SLA) focuses on the quality of the services and the conditions under which they are delivered, with measurable objectives and the consequences if those are not met. A DNO does exactly the same thing — “DNO” is simply the Dutch translation of SLA. Both focus on general service provision and practical matters such as security, maintenance, and support.

What is included in a DNO?

A DNO deals with, among other things:

  • which services are provided and how;
  • the guaranteed availability and measurable performance goals;
  • exceptional situations, such as force majeure or downtime during scheduled maintenance;
  • the availability of support;
  • the consequences if the performance targets are not met.

When formulating the guaranteed performance, it is important that it meets requirements such as validity, unambiguousness, measurability, and comparability. For each performance indicator, you define a standard (a minimum or maximum that must not be exceeded or fallen short). Restrictions are often included as well, such as a maximum number of concurrent users. If these restrictions are not adhered to, the performance indicators do not apply and the service is not guaranteed.

Why is a DNO important?

With a Data Protection Agreement (DNO), both parties have the same expectations and know what the delivered services entail. Without a DNO, misunderstandings can arise, the customer may become dissatisfied, and there may even be a breach of contract if the services do not meet expectations. Many problems can therefore be prevented simply by drafting a good DNO.

Frequently Asked Questions

Is a DNO legally the same as an SLA?

Yes. In terms of content, there is no difference; DNO is the Dutch name for a Service Level Agreement.

Which performance agreements belong in a DNO?

Measurable, unambiguous standards per performance indicator (such as availability/uptime), with any restrictions and the consequences if the standards are not met.

Can I copy a standard DNO?

Better not. Because the expectations of both parties are central, a DNO is custom work. A copied DNO rarely aligns with your situation and causes problems.

What happens if the agreed performance targets are not met?

That depends on what you agree upon, such as a discount, penalty, or service credits. Clearly document these consequences in the DNO.

Have a DNO drafted or reviewed?

A Data Protection Agreement (DNO) is custom-made and requires careful, legally valid agreements. We draft your DNO or review an existing agreement to ensure it aligns with the wishes of both parties and holds up legally.

Also view our SLA and our expertise in contract law, and schedule a no-obligation intake meeting.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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