ISPs are increasingly offering a variety of network-based services such as VPN, VPLS, VoIP, Virtual-Wire and DDoS protection. Although both enterprise and residential networks are rapidly adopting these services, there is little systematic work on the design challenges and trade-offs ISPs face in providing them. The goal of our paper is to understand the complexity underlying the layer-3 design of services and to highlight potential factors that hinder their introduction, evolution and management. Using daily snapshots of configuration and device metadata collected from a tier-1 ISP, we examine the logical dependencies and special cases in device configurations for five different network-based services. We find: (1) the design of the core data-plane is usually service-agnostic and simple, but the control-planes for different services become more complex as services evolve; (2) more crucially, the configuration at the service edge inevitably becomes more complex over time, potentially hindering key management issues such as service upgrades and troubleshooting; and (3) there are key service-specific issues that also contribute significantly to the overall design complexity. Thus, the high prevalent complexity could impede the adoption and growth of network-based services. We show initial evidence that some of the complexity can be mitigated systematically.