LIBRARY TECHNOLOGY INDUSTRY UPDATE: BUSINESS AND TECHNOLOGY TRENDS

Marshall BreedingIndependent Consultant, Author, andFounder and Publisher, Library Technology Guideshttp://librarytechnology.org/http://twitter.com/mbreeding

29 October, 2014 Internet Librarian 2014

Summary

Libraries worldwide spend almost $2 billion/year on technology hardware, software and services and are constantly considering prudent strategic technology investments. Author of the “Automation Marketplace Industry Report” (Library Journal, 2002–2013) and the “Library Systems Report” (American Libraries, 2014), Breeding has the incredible ability to explain the current state of the industry and what we need to watch for in the future to factor into our technology decisions today.

Sources

American Libraries Library Systems Report 2014 online edition published April 15

Perceptions Surveys 2014 edition recently published http://librarytechnology.org/perceptions201

3.pl Turnover Reports:

http://www.librarytechnology.org/ils-turnover.pl?Year=2013

http://www.librarytechnology.org/ils-turnover-reverse.pl?Year=2013

Library Technology Guides

librarytechnology.org

Mergers and Acquisitionshttp://librarytechnology.org/mergers

Library Technology Industry Reports

2014: Strategic Competition and Cooperation

2013: Rush to Innovate 2012: Agents of Change 2011: New Frontier 2010: New Models, Core

Systems 2009: Investing in the Future 2008: Opportunity out of turmoil 2007: An industry redefined 2006: Reshuffling the deck 2005: Gradual evolution 2004: Migration down,

innovation up 2003: The competition heats up 2002: Capturing the migrating

customer

American Libraries Library Journal

Library Systems Report 2014

Library Systems Report 2014 Arabic

Library Systems Report 2014 Spanish

http://

www.thinkepi.net

Library Systems Report Tables

http://www.americanlibrariesmagazine.org

Perceptions 2013

http://www.librarytechnology.org/perceptions2013.pl Annual survey for Libraries Satisfaction levels for

Company Current ILS Service Loyalty Migration Plans

3002 Responses 53 Countries

Perceptions Survey 2013

Product Satisfaction for Large Public Libraries

American Libraries Library Systems Report

Library Systems Report 2014: Strategic Competition and Cooperation Online Publication: April 15, 2014 Covers 2013+ calendar year activities

Library Journal Automation Marketplace

Published annually in April 1 issue Based on data provided by each vendor Focused primarily on North America

Context of global library automation market

Library Technology Industry Reports

2014: Strategic Competition and Cooperation

2013: Rush to Innovate 2012: Agents of Change 2011: New Frontier 2010: New Models, Core

Systems 2009: Investing in the Future 2008: Opportunity out of turmoil 2007: An industry redefined 2006: Reshuffling the deck 2005: Gradual evolution 2004: Migration down,

innovation up 2003: The competition heats up 2002: Capturing the migrating

customer

American Libraries Library Journal

Industry Revenues

$1.8 billion global industry

$790 million from companies involved in the US

$485 million from US Libraries

Industry Giants

Ex Libris: 3,957 customer libraries 536 FTE Employed

Innovative 410 FTE employed 1,640 libraries

SirsiDynix: 3,595 libraries 385 FTE Employed

Personnel Resources 2013

      2013  2013 201

2Company Dev SupSales Admi

nOthe

rTotalTotal

EBSCO Information Services 424 869 554 98 862 2807

 

OCLC           1280 1250Ex Libris 194 222 60 46 14 536 522SirsiDynix 102 170 53 20 40 385 369EOS International             50Follett Software Company 120 164 52 10 15 361

341

Innovative Interfaces, Inc. 103 184 61 55 7 410

341

Serials Solutions 124 63 52 5 11 255 256The Library Corporation 41 93 25 13 27 199 199Polaris Library Systems 27 50 17 3   97 93VTLS 25 35 8 9   77 86Equinox Software 5 7 2 2 2 18 20ByWater Solutions 1 12 2 3   14 13

Personnel Resources: Open Source

Company Dev Sup

Sales Admin

Other

Total

PTFS -- LibLime

5 16 3 8 8 155

Equinox Software

5 7 2 2 2 18

ByWater Solutions

1 12 2 3 0 18

Mergers and Acquisitions Activity

Mergers and Acquisitions

Mergers and Acquisitions Detail

Personnel Growth / Loss

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

100

200

300

400

500

600

700

800

Ex Libris

SirsiDynix

Follett Software Company

Innovative Inter-faces, Inc.

Innovative Interfaces 2012-13 Majority acquisition by 2 private Equity

Firms: Huntsman Gay Global Capital + JMI Equity New C-level management

Kim Massana, CEO Subsequent Transaction: Kline sells

remaining shares and exits Global expansion

Dublin, Ireland Noida, India

Innovative Interfaces 2014

Innovative acquires Polaris Library Systems

Jim Carrick and partners sell shares and exit

No longer a separate company Bill Schickling now Senior VP for Global

Sales Polaris office East Coast Operations center

Innovative Acquires VTLS

SirsiDynix acquires EOS International

Co-founder Scot Cheatham sells shares and exits

1,100 mostly special libraries use EOS.Web

Common strategy for hosted solutions

EBSCO Information Services

Internal Consolidation: EBSCO Publishing + EBSCO Information

Services Tim Collins, President and CEO

Also named CEO of EBSCO Industries

ProQuest

Internal Consolidation Kurt Sanford CEO (since July 2011) Serials Solutions brand retired Worlflow Solutions under Kevin Sayer

Follett Library Solutions

Internal Consolidation Tom Schenck, President and CEO Follett Library Software Follett Library Resources Follett Educational Resources Follett International

Lucidea Corporation

Ron Aspe, President and CEO SydneyPLUS Inmagic Cuadra Associates

Web-scale Index-based Discovery

Search:

Digital Collections

Web Site ContentInstitution

al Repositori

es

…E-Journals

Reference Sources

Search Results

Pre-built harvesting and indexing

Conso

lidate

d In

dex

ILS Data

Aggregated Content packages

(2009- present)

Usage-generate

dData

Customer

Profile

Discovery Service Statistics

Discovery Product 2010 2011 2012 2013InstalledEBSCO Discovery Service 1774 5612Primo 506 111 101 98 1407Encore 56 72  36 365Summon 164 214 158 673SirsiDynix Enterprise 75 100 102 123 407Axiell Arena 57 33 104 35 316Chamo 34 7 23 36 128

Recent ILS Industry Contracts

Company Product 2009

2010 2011 2012 2013

OCLC WMS 184 163 92

Innovative Sierra   206 117 113

Ex Libris Alma 8 24 17 31

SirsiDynix Symphony  - 126 122 104 128

Innovative Millennium 45 39 32 30 1

TLC Library.Solution 30 43 48 13 17

Ex Libris Aleph 47 39 25 26 25

VTLS Virtua 18 22 13 14 7

Polaris Polaris ILS 33 23 53 30 30

Biblionix Apollo 55 87 79 80 87

ByWater Solutions

Koha 7 44 54 34 68

PTFS LibLime LibLime Academic Koha

    7 5 6

PTFS LibLime LibLime Koha   44 27 37 30

Equinox Evergreen 18 15 21 37 12

Transition to Library Services Platforms

New platforms take the stage Ex Libris Alma, OCLC WorldShare

Management Services, ProQuest Intota, Kuali OLE, Innovative Interfaces Sierra(others?)

Basic design to manage resources of all formats and media

Reliance on collaboratively built and shared data models

Deployed through cloud technologies

Integrated (for print) Library System

Circulation

BIB

Staff Interfaces:

Holding / Items

CircTransact

User Vendor Policies$$$

Funds

Cataloging Acquisitions Serials OnlineCatalog

Public Interfaces:

Interfaces

BusinessLogic

DataStores

2005 – Present ILS / ERM Fragmentation

Circulation

BIB

Staff Interfaces:

Holding / Items

CircTransact

User Vendor Policies$$$

Funds

CatalogingAcquisitionsSerials OnlineCatalog

Public Interfaces:

Application Programming Interfaces

`

LicenseManagement

LicenseTerms

E-resourceProcurement

VendorsE-Journal

Titles

Protocols: CORE

Con

solid

ate

d in

dex

Unified Presentation LayerSearch:

Digital Coll

ProQuest

EBSCO…

JSTOR

Other Resour

ces

New Library Management Model

`

API Layer

Library Services Platform

LearningManageme

nt

LearningManageme

nt

Enterprise ResourcePlanning

Enterprise ResourcePlanning

StockManageme

nt

StockManageme

nt

Self-Check /

Automated Return

Self-Check /

Automated Return

Authentication

Service

Authentication

Service

Smart Cad /

Payment systems

Smart Cad /

Payment systems

Discovery

Service

Library Services Platform

Library-specific software. Designed to help libraries automate their internal operations, manage collections, fulfillment requests, and deliver services

Services Service oriented architecture Exposes Web services and other API’s Facilitates the services libraries offer to their users

Platform General infrastructure for library automation Consistent with the concept of Platform as a Service Library programmers address the APIs of the platform to

extend functionality, create connections with other systems, dynamically interact with data

Library Services Platform Characteristics

Highly Shared data models Knowledgebase architecture Some may take hybrid approach to accommodate local

data stores Delivered through software as a service

Multi-tenant Unified workflows across formats and media Flexible metadata management

MARC – Dublin Core – VRA – MODS – ONIX Bibframe New structures not yet invented

Open APIs for extensibility and interoperability

Library Services Platforms

Category WorldShare Management Services

Alma Intota Sierra Services Platform

Kuali OLE

Responsible Organization

OCLC. Ex Libris Serials Solutions

Innovative Interfaces, Inc

Kuali Foundation

Key precepts Global network-level approach to management and discovery based on central data: stores WorldCat + holdings + Items

Consolidate workflows, unified management: print, electronic, digital; Hybrid data model

Knowledgebase driven. Pure multi-tenant SaaS

Service-oriented architectureTechnology uplift for Millennium ILS. More open source components, consolidated modules and workflows

Manage library resources in a format agnostic approach. Integration into the broader academic enterprise infrastructure

Software model

Proprietary Proprietary

Proprietary Proprietary Open Source

Development Schedule

WorldShare Management Services

Alma Intota Sierra Services Platform

Kuali OLE

General Release in July 2011~200 now in productionFirst ARL member in production in June 2014

329 libraries have signed for Alma. Over 200 in production

Libraries in production by 2015

336 contracts completed, many libraries in production (~250?)

Version 1.0 released Dec 2013Version 2.0 underwaySummer 2014 implementations atUniversity of Chicago and Lehigh University

Integrated Library Systems?

ILS products continue to evolve Continue to be appropriate for libraries

with active physical collections Public Libraries

Development trajectory must include Integration of e-book lending Service-oriented architecture Improved support for non-print materials

Evolved ILS will eventually resemble library services platforms

Evolved ILS example: Polaris Basic structure of an ILS APIs available for extensibility LEAP: development of Web-based staff

interfaces Full integration of e-book discovery and

lending Partnership with 3M Cloud Library

Continues to see strong sales LEAP: new development on Web-based

staff clients

Notable Companies

OCLC

Non-profit corporation based in Dublin Ohio $203.5 million revenue 2011/12 fiscal year $57 million in scope of automation industry Owned and Governed by membership: Board

of Trustees, Global and Regional Councils Lawsuit between SkyRiver / Innovative vs

OCLC withdrawn Annual Reports available:

http://www.oclc.org/news/publications/annualreports/2012/2012.pdf

Ex Libris

Largest company in the industry Formidable competition for Academic

Libraries Global marketing strength

Europe, Asia, North America Latin American distributor

Longstanding business strategy based on research and development 194 personnel in development out of 536

Ex Libris Product Strategy

Legacy ILS remain viable and profitable Aleph – Many national and large research

library installations Voyager – Many national and academic

research Customer base seeing some erosion to

competing systems Alma developed as replacement for

Aleph, Voyager and to attract new academic clients Academic libraries running non-specialized

ILS targets for Alma

Innovative Interfaces

Global company: Based in Emeryville, CA Markets to all library types Owned by HGGC and JMI Equity 361 employees, 120 in development International expansion

Polaris

Acquired by Innovative in 2014 Major competitor for public libraries Mid-sized company (97 employees) Focus:

Market: US Public Libraries Technology: MS Windows platform

Strong customer service performance

ProQuest: (Workflow Solutions) Focus on Academic Libraries Summon: first Web-scale Discovery

Service Summon 2.0 announced for summer 2013

Intota: Planned Library Services Platform (2015)

SirsiDynix

Continues to see new sales, especially internationally

Two flagship ILS products: Horizon and Symphony Symphony winning new sites, mostly

outside the US Revival of development and support for

Horizon

SirsiDynix Product Strategy

Layer new technologies on the old Web Services layer for Horizon and Symphony New “BLUE Cloud” suite

Enterprise Portfolio BookMyne Social Library (Facebook app)

eResource Central e-resource management and discovery (mostly e-

books) 1-click check-out and download of e-books

Open Source Integrated Library Systems

Major thread in library systems development Koha Evergreen Kuali OLE

Open Source Automation Systems Koha

Small to mid-sized public and academic libraries

Used by several consortia (SKLS) Evergreen

Designed for Library Consortia Kuali OLE

Designed for large research libraries

Koha Libraries Worldwide

Evergreen

Popular system for state funded initiatives Georgia Pines Virginia Evergreen Indiana Evergreen Pennsylvania Integrated Library System:

SPARKS Massachusetts: CW/MARS, Bibliomation,

Merimack British Columbia SITKA North Carolina Cardinal Vermont: new Catamount project

Evergreen Libraries Worldwide

Kuali OLE

Enterprise level library services platform Financial and in-kind contributions from

investing institutions Matched by the Andrew W. Mellon

Foundation Major academic libraries in the US

involved as original investing partners UK: Senate House Library + Bloomsbury

Colleges now committed in principal

Kuali OLE Timetable

In development since 2009 Some libraries may go live in 2014 Additional grant from Mellon Foundation

in 2012 to extend development Version 1.0 Released for Dec 2013 GOKb project started in 2012 for e-

resource management

Kuali OLE in Production

Version 1.5: Print functionality only Electronic Resource Management

implemented in 2015 in Version 2.0 release Lehigh University

August 19, 2014 University of Chicago

Essential Investments

Many libraries operate with automation systems not well aligned to the composition of their collections

Library and campus tools may seem unsophisticated and primitive relative to what students experience outside the campus domain

Practice of under-investment and deferred maintenance or replacements of library technology infrastructure

Leadership and Engagement Transition to new technology models just

underway More transformative development than

in previous phases of library automation Opportunities to partner and collaborate

Vendors want to create systems with long-term value

Question previously held assumptions regarding the shape of technology infrastructure and services

Provide leadership in defining expectations

Questions and discussion