Phasing out
Synonyms: deprecation or phase out
What is phasing out?
To phase out is to slowly stop providing a product or service. To begin with, active promotion of the product is discontinued. Existing inventories are eliminated, possibly through alternative sales channels and at lower prices. Once sales completely cease, the product is completely out of the market. However, existing users can still count on support from the supplier during the phase-out (and beyond).
Example of a phase-out
One of the industries where phasing out is common is computer software. As soon as a new version of a program arrives, or is launched, distribution of the previous version is phased out. Eventually, existing users will also be encouraged to switch to the latest version, for example with an upgrade offer. Support for outdated software (think security updates) usually expires within a few years.
Once a product or service is completely phased out, it is also known as end of life.
Why phase out?
Phasing out is a strategic decision that organizations make to operate more efficiently, adapt to changes in the marketplace or meet new standards and requirements. It is important when phasing out to carefully consider the impact on users and stakeholders and ensure a smooth transition. This prevents dissatisfaction.
