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Software Complexity is Killing saas

More does not equal better

In SaaS, growth is often linked to adding more features, more integrations and ultimately more complexity. The logic seems sound: customers want innovation, competitors are launching new things, and businesses need to stay ahead.

This is especially true in the LegalTech and RegTech industries. They are all at an arms race to add more products, somehow forcing AI and other fads into their product roadmap.

There are so many onboarding and risk management tools that stitch together a Frankenstein software with multiple integration, and no real unique value proposition. They do 0 market research and all think they are the first comprehensive tool in the market.

But here’s the reality: the race to add more features is ruining b2b software as a service. It is such a shame that some companies do not recognise what it is their customers want out of them. Your core customers didn’t sign up for future additions, they signed up to the present offering.

The Dragonfly Principle: Why Some Things Shouldn’t Change

Imagine designing something once, and it working so well that it doesn’t need to change for 300 million years (shoutout to Bic Cristal).

That’s kind of what happened with dragonflies. They evolved to a point where their system was well optimised and required no additional feature, just further refinement.

Believe it or not, they’ve been around since before the dinosaurs, and their design has barely changed.

Sure they used to be a bit bigger, but the main gimmick stayed the same. It worked so well that they did not need any additional feature as a specie.

This doesn’t mean they didn’t evolve, it just means that instead of adding new features, they refined and perfected their existing build.

So, they mastered speed and precision. That’s why they are the greatest predator on earth. These qualities are achievable for any entity or business.

Now, compare that to SaaS companies these days. Instead of refining a winning model, many companies constantly tinker and add:

  • New fad features
  • Existing features get modified for no reason
  • Interfaces change for the sake of “innovation.”

All of this makes software more complex, not better.

It’s a cycle we’ve seen before. Companies that start lean and effective often get caught in a feature arms race, leading to slow, clunky, overwhelming software.

And here’s the kicker: most customers never asked for this!

The Mailchimp Effect: How Good Products Become Unusable

Once upon a time, Mailchimp was the go-to email marketing platform for small businesses.

  • Simple UI.
  • Easy automation.
  • Affordable pricing.

Then it kept growing. New features were added. Pricing structures changed. Workflows became more complicated.

Today, many longtime users are frustrated:

“I couldn’t help but feel like the whole setup has gotten significantly more complicated than I remember.” — Reddit user in r/EmailMarketing

The biggest irony? The simplicity that once made Mailchimp great was eroded in the quest for “growth.”

This isn’t an isolated case. Many SaaS platforms start as beautifully simple solutions, then lose themselves in complexity.

  • Slack added so many enterprise features that small teams started switching to Discord or Basecamp.
  • Evernote packed in so much functionality that core users left for Notion and Apple Notes.
  • Adobe Creative Cloud is so bloated that lightweight tools like Canva are replacing Photoshop for many professionals.

This happens because companies assume that more = better. But in reality, better = better.

When software becomes harder to use, it stops being useful.

Complexity is Killing SaaS

A bloated SaaS product isn’t just an inconvenience, it’s a business killer.

Justin Etheredge, a veteran software engineer, put it simply in r/programming:

“Complexity is the biggest problem we face, and it’s almost impossible to avoid.”

The consequences of complexity ripple across every level of a business:

1. User Frustration = Higher Churn

When features pile up, users start struggling. They need to learn new things, adjust workflows, and deal with longer onboarding times.

For many, it’s not worth it. They switch to something simpler.

2. Developer Burnout & Slower Iteration

Every feature added creates more code to maintain.

  • Bugs become harder to fix.
  • Updates take longer.
  • Teams spend more time managing old features instead of improving the product.

It’s no surprise that SaaS developers often feel overwhelmed and exhausted.

3. Higher Costs & Lower Efficiency

Every new feature requires:

  • Design & development
  • QA testing & bug fixes
  • Customer support training
  • Marketing & documentation

The more complex a product gets, the more expensive it is to maintain and harder to sell.

Worse, complexity slows down teams. Meaning fewer updates, longer release cycles, and higher operating costs.

4. Increased Security Risks

Every new feature introduces new vulnerabilities.

In a world where security threats are growing, SaaS businesses can’t afford to mindlessly expand their attack surface. Recently a prominent RegTech in our ecosystem had a security breach, word gets around very fast from customers to other vendors and within a week the entire market.

Why Do Companies Keep Adding More Features?

Here’s why:

  1. Fear of Falling Behind – Companies add features because their competitors do, even if customers don’t need them.
  2. Enterprise Pressure – To attract big clients, software adds unnecessary features for a tiny percentage of users or one single client.
  3. Misleading Metrics – Many SaaS companies measure feature adoption, not usability or customer satisfaction.
  4. Resume-Driven Development – Engineers want to build cool, complex things, even when simplicity is better.
  5. Marketing Demands – More features = bigger piece of the problem solved for clients, even if the product is getting worse.

This is why most software gets worse over time.

Ironically, users don’t leave because of a lack of features. They leave because the product becomes frustrating.

The Military Strategy That SaaS Should Learn

Military strategy teaches us that trying to fight on too many fronts leads to failure.

The best armies focus their efforts with a strategic vision. The Mongols deployed the same strategy over and over, simply because it works.

Same with Khabib Nurmagomedov. Everybody know’s what he is going to do, it is the most simple strategy, but because the opponents have scattered skillsets, they lose to a more focused and simple strategy.

SaaS companies need to do the same. Instead of chasing every possible feature, they should:

  1. Double down on their strengths.
  2. Simplify and refine their core experience.
  3. Optimise performance and usability.

The best SaaS companies aren’t the ones that do the most, they’re the ones that do one or two things exceptionally well.

Do Less, But Better

So how do SaaS companies avoid feature bloat and focus on what really matters?

1. Make What You Have Work Flawlessly

Ask:

  • Can we simplify the UI?
  • Can we improve speed, reliability or pass rates?
  • Can we remove unnecessary steps to get to a point of action on the software?

2. Balance customer feedback with strategic vision

Some users may request new features, but most users just want they really want is a better experience.

Look for:

  • Patterns in feedback.
  • Core pain points that need fixing.
  • Simplicity over complexity.

3. Cut the Fat

If a feature isn’t absolutely necessary, cut it.

4. Prioritise UX Over Features

The best software isn’t the one with the most features, it’s the one that’s easiest to use.

  • Reduce clutter.
  • Improve workflows.
  • Make everything intuitive.

5. Expand Thoughtfully

New features should be painfully obvious improvements, not just “nice to have” or “new revenue maker.”

A simple rule: If less than 5% of users will use it, don’t build it.

Final Thoughts

The best software companies don’t succeed by adding more. They succeed by making their product Excellent.

Stop asking, “What can we add?” and start asking, “What can we simplify?”

Because in the end, the future of SaaS isn’t more.

That’s why Canva and Figma are more appealing to mainstream than Adobe. Same with Old School Runescape or any other game that strays away from the formula that simply once worked! Make something perfect once, and keep it forever.

Or play the game of feature arms race and never truly establish a product market fit.

author avatar
Arsalan Abbasi Founder
LegalTech & RegTech Expert

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