Sunsetting is the intentional phasing out or termination of something, and in business, the term is used often regarding brands, partnerships, agreements, policies, and hardware and software.
Sunsetting something may be part of the original plan. In a legal context, for example, a sunset provision is a specification that legislation will no longer be in effect beyond a certain date or after a particular event has transpired, unless an extension is mandated.
However, it could also occur because of unplanned circumstances, for example, when a company is acquired and the new owner sunsets an old product line. If two companies with similar product lines merge, one of the lines could be discontinued.
In most cases, products and services are often sunsetted when they are no longer sufficiently profitable or when a company changes its focus. Software vendors usually sunset older versions of their products when a newer version is available. Or sunsetting can occur when a new technology replaces an older one. One example is the shift from 3G networking to 4G and then 5G. Another example is the transition to newer Windows operating systems (OSes), such as Windows 11. When this type of transition occurs, the earlier product or technology is no longer supported.
A legacy application, such as an older browser, may still work. However, it may be unstable because of compatibility issues with current OSes, browsers and IT infrastructures.
Sunsetting might take place for the following reasons:
The following are common examples of sunsetting in business:
There's no easy answer to this question. Sunsetting decisions must be made on a case-by-case basis, considering all the relevant factors. Nevertheless, sunsetting is usually the right move in the following scenarios:
The process of sunsetting a product, service or another business offering can be complex. It may involve legal, financial and emotional challenges.
There may be customers who are loyal to the item being sunsetted and who need to be transitioned to a new solution. Also, some employees may be attached to the item and need help finding new roles within the company. Finally, there may be environmental concerns if the sunsetting results in increased waste.
Overall, it's important to sunset responsibly and thoughtfully to keep negative impacts to a minimum.
Sunsetting can be difficult but necessary for businesses. Here are some tips to help businesses sunset responsibly and thoughtfully:
See also: deprecation and product lifecycle management.
07 Oct 2022