In the fast-evolving software world, companies constantly face tough decisions: which products or features to keep investing in—and which to retire. While developing new features is exciting, knowing when it’s time to ‘sunset’ a product is also critical for long-term success.
This decision can be complex. It involves multiple factors, like changing customer needs, ongoing maintenance costs, and your broader business strategy. What if you still need a product feature, but lack the in-house resources to maintain it? Recognising the signs that it’s time to ‘sunset’ a product can help you make smarter decisions—and create space for growth.
Here are four signs to watch for:
1. You need to put resources elsewhere
When considering retiring a feature that sits outside your core offering, development and maintenance costs are often a major factor. Continuous updates, compatibility work, and support all require time, money and technical resources.
If a feature consumes more resources than it generates in value, it might be time to reconsider its place in your product portfolio. Outdated code or infrastructure can also slow your development process, draining resources that could be better spent on future innovations.
Ideally, you need to cut the cost of development, maintenance, and innovation without depriving customers of a feature they may have grown to love. Reallocating resources from underperforming features to higher-impact areas can drive overall growth and innovation.
2. Your tech stack needs an update
Technology evolves quickly, and what was cutting-edge a few years ago might be obsolete today. If a feature is built on an outdated tech stack, it can become difficult and expensive to maintain.
In these cases, it's worth assessing whether migrating or modernising the feature makes sense—or if it would be better to sunset it entirely. Outdated technologies can pose security risks and hurt your software product's overall performance.
Keeping your tech stack up to date not only enhances efficiency but also provides a stronger foundation for future features and innovations.
3. Your strategic focus has changed
Companies evolve—and so do their business goals and strategic focus. A product or feature that once aligned perfectly with the company’s vision might no longer fit into future roadmaps.
For example, if your company focuses on enterprise clients, it might make sense to sunset products originally designed for smaller businesses. Regularly evaluating whether each product or feature still aligns with current business objectives helps ensure that resources are allocated effectively and efficiently.
Strategic alignment ensures that your offerings continue to deliver maximum impact for your target audience. This often means cutting the cost of development and maintenance—without depriving customers of features they rely on—while reallocating resources to areas with the greatest growth potential.
4. Your customers prefer a competitor
External factors, such as shifts in the competitive landscape, sometimes impact your decision to retire a product or feature. Customer feedback and user research may reveal that your users prefer an alternative solution. If that’s the case, it could be a sign that your feature’s time is up.
If a competing solution outperforms yours and dominates the market, it’s worth assessing whether to reinvest in improvement or reallocate resources to areas where your company can better differentiate itself. Listening to your customers and understanding their evolving needs can guide more informed decisions.
But is it always the right call? Just because competitors offer a stronger alternative doesn’t mean you need to exit the race.
Conclusion: sunrise follows sunset
Letting go of a feature or product—especially one that’s close to your core offering—can be a tough decision. It might feel like you’re creating space for a competitor to step in. However, just because you sunset in-house development doesn’t mean you have to give up the feature—or your position in the market.
Instead, reevaluating your product portfolio and making strategic adjustments can free up resources to support long-term growth and innovation, ensuring your company’s offerings remain competitive and focused. And importantly, it doesn’t have to mean ending your offering of that product or feature.
For instance, many software companies find that third-party technology partnerships allow them to maintain or enhance their offerings—while saving on development, innovation and maintenance costs. White-label and embedded solutions enable you to deliver advanced functionality under your own brand, without sacrificing speed, quality, or control. You keep the feature, just stop building it alone and refocus on your core business.
Done right, sunsetting can pave the way for something better—a smarter, more scalable way to evolve your product offering, and a more focused approach on your core strengths. And just as sunrise follows sunset, these strategic decisions can result in new growth opportunities.
If you’re weighing the pros and cons of in-house development, marketplaces, or tech partnerships, finding the right balance is key. 👉 Read our blog: In-house features vs marketplaces: finding the right balance for your product portfolio.
Looking to evolve your product offering without the burden of building everything in-house? Explore how Findity’s expense management solutions can enhance your product portfolio. Book a demo today.
