Planned Obsolescence: Definition, Impact, Challenges

Implemented after the 1929 crisis in the United States to boost the economy, planned obsolescence became widespread in the 1950s and turned into a formidable tool to “encourage” consumers to frequently renew their equipment. What does planned obsolescence entail when applied to new information technologies and software licensing? What is its impact on the environment? How can you extend the lifespan of your equipment without hindering the performance of your IT system?

What is planned obsolescence?

The throwaway culture is defined as “the set of techniques by which the market introducer of a product deliberately aims to reduce its lifespan to increase the replacement rate.” This practice, which has become ingrained, results in products with deliberately shortened lifespans, prohibitive repair costs, and limited availability of spare parts over time. This unfair commercial practice aims to stimulate overconsumption, leading to a production excess that is devastating in many respects.

The impact of planned obsolescence on the environment

From an environmental perspective, disposability leads to the overexploitation of raw materials, destruction of ecosystems, and depletion of natural resources. Planned obsolescence produces between 20 to 50 million tons of waste annually worldwide, much of which is buried in southern countries, with disastrous social and environmental repercussions. In France, it accounts for up to 20 kg of waste per person per year.

Planned obsolescence affects household appliances, high-tech products, and cars. New technologies are also affected by planned obsolescence and the overexploitation of natural resources. For instance, manufacturing a computer requires nearly 800 kg of raw materials, with a CO2 equivalent emission of 124 kg, while its lifespan is deliberately limited. 

The different types of planned obsolescence

The French Environment and Energy Management Agency (ADEME) distinguishes two types of planned obsolescence:

• Functional obsolescence, in the case of a product no longer meeting expectations for technical, regulatory, and economic reasons. Also known as “planned functional obsolescence,” it involves making a product obsolete by launching a new product that more effectively meets your needs.
• Fashion obsolescence or planned desirability obsolescence, when a product no longer meets the user's desires due to its outdated design, for example.

There are other kinds of planned obsolescence, such as:

• Indirect obsolescence: the case of ink cartridges and printers is symptomatic of an abusive practice.
• Notification obsolescence: when your computer or smartphone notifies you to change the battery.
• Incompatibility obsolescence: which is similar to functional obsolescence as it encourages equipment change to allow a software upgrade.

Software planned obsolescence, what are the challenges?

Planned obsolescence is a common practice in the field of software licensing. Publishers use it to maintain high revenue levels despite an installed base with low growth margin. According to the General Council for the Environment and Sustainable Development, software obsolescence can be defined as “stemming from the unavailability or malfunction of the software”. Concretely, publishers release new minor and major software versions at a steady pace, causing compatibility issues with the hardware configurations where they are installed and integration problems for users of features that are not necessarily useful.

The development of cloud technologies and the generalization of on-demand solutions have accelerated these unfair practices, making users and IT managers even more captive, having lost control of their licenses to the benefit of publishers.  

How to fight against planned software obsolescence?

To fight against software obsolescence and extend the life of your infrastructure in an eco-friendly approach, simply replace your on-demand licenses with second-hand on-premise software licenses. By favoring the use of perpetual licenses, you regain control over the evolution of your software architecture and decide on the update pace based on your users' functional needs. This strategy of optimizing your software assets allows you to precisely determine your needs, expected features, and unused licenses. Thanks to the Softcorner marketplace, the European leader in the second-hand software license market, you can buy software licenses cheaper that you need (compliance, project development, or equipping a new workstation) and sell your decommissioned licenses.