Where 99% is used
A common entry-level commitment for smaller vendors, internal platforms, and the cheaper tier of a tiered SLA. It is the level most teams hit by accident once they have basic monitoring and someone who responds.
What it demands
Business-hours response is enough. You can absorb a multi-hour incident and still make the number. The failure mode at this tier is not slow recovery, it is not noticing at all over a weekend.
One step either way
Dropping to 95% widens the monthly budget to 1d 12h. Moving up to 99.5% cuts it to 3h 36m.
Measuring it
You cannot report on a service level you are not measuring at a finer resolution than the budget itself. At 99% the monthly allowance is 7h 12m, so a check interval anywhere near that figure will miss breaches entirely. Work out your own numbers, or monitor it continuously from four regions, free to start.