Product end-of-life (EOL) has become a strategic tool to shift the business model or drive higher annual recurring revenue (ARR) and lifetime customer value (LCV). Product professionals are increasingly being asked by leadership to contribute to the decision and the direction of the product portfolio or end-of-life, and consolidating products plays a big part.
Sunsetting or EOL is retiring a software product or service from active use and it can occur for various reasons, including obsolescence, lack of support, or a company’s strategic direction shift. There are best practices to consider regarding the end-of-life process for software products with perpetual licenses and software as a service (SaaS) subscriptions. Vendors and developers should consider best practices, risks, and their customer’s situations when developing EOL strategies to maximize the benefits and minimize the risks associated with the process.