[tbrownaw]

How is it ridiculous?

They're explicitly not saying that it will never go down. They're saying that if it ever does go down, they will pay their customers a penalty. Without having any "acceptable" amount of downtime that they don't have to pay a penalty for.

Really, too-many-9s SLAs are what's ridiculous. So you say you "guarantee" 99.99% uptime, but only interruptions of 30min or more actually count? 2 incidents of 29 minutes would put you over that .001% that you claim, without either counting.