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This paper provides an overview of service level agreements (SLAs) in IP networks. It looks at the typical components of an SLA and identifies three common approaches that are used to satisfy SLAs in IP networks. The implications of using the approaches in the context of a network service provider, a hosting service provider, and an enterprise are examined. While most providers currently offer a static insurance approach toward supporting SLAs, the schemes that can lead to more dynamic approaches are identified.