1. COMPETING VISIONS FOR THE FUTURE OF LIBRARIES OCLC and SkyRiver Marshall Breeding Independent Consult, Author, Founder and Publisher, Library Technology Guides http://www.librarytechnology.org/ http://twitter.com/mbreeding American Association of Law Libraries 2012 July 23, 2012

2. Caveats  Supportive of both organizations  No bias toward preferred outcome  Technology and Business perspective – not legal

3. Competing Visions  OCLC sees itself as the entity positioned to bring libraries together worldwide through an interrelated set of products and services  Innovative and SkyRiver offer libraries and consortia competitive alternatives for technology and bibliographic services

4. General Technology Trends

5. Discovery  Tools to help library users access library collections  Online Catalog  Next-gen Library Catalog  Discovery Interfaces  Product development trends

6. Online Catalog  Books, Journals, and Media at the Title Level  Not in scope:  Articles  Book Chapters  Digital objects  Web site content  Etc. Scope of Search Search: Search Results ILS Data

7. Next-gen Catalogs or Discovery Interface (2002-2009)  Single search box  Query tools  Did you mean  Type-ahead  Relevance ranked results (for some content sources)  Faceted navigation  Enhanced visual displays  Cover art  Summaries, reviews,  Recommendation services

8. Discovery Interface search model Search: Digital Collections ProQuest EBSCOhost … MLA Bibliography ABC-CLIO Search Results Real-time query and responses ILS Data Local Index MetaSearch Engine

9. Discovery from Local to Web-scale  Initial products focused on technology  AquaBrowser, Endeca, Primo, Encore, VuFind,  LIBERO Uno, Civica Sorcer, Axiell Arena  Mostly locally-installed software  Current phase is focused on pre-populated indexes that aim to deliver Web-scale discovery  Primo Central (Ex Libris)  Summon (Serials Solutions)  WorldCat Local (OCLC)  EBSCO Discovery Service (EBSCO)  Encore with Article Integration (no index, though)

10. Web-scale Index-based Discovery Search: Digital Collections Web Site Content Institutional Repositories … E-Journals Reference Sources Search Results Pre-built harvesting and indexing Consolidated Index ILS Data Aggregated Content packages (2009- present)

11. Web-scale Search Problem Search: Search Results Pre-built harvesting and indexing Consolidated Index ?? ? Non Participating Content Sources Non Participating Content Sources Problem in how to deal with resources not provided to ingest into consolidated index Digital Collections Web Site Content Institutional Repositories … E-Journals ILS Data Aggregated Content packages

12. Discovery Observations  Web-scale or index-based discovery gaining wider adoption in the broader research library arena  Not as well accepted in specialized disciplines such as Law  Index-based discovery helpful to provide specialized resources to generalist researchers or cross-disciplinary activities

13. Library Management  Tools for library personnel to manage collections and automate operations

14. Integrated (for print) Library System Circulation BIB Staff Interfaces: Holding / Items Circ Transact UserVendorPolicies $$$ Funds CatalogingAcquisitionsSerialsOnline Catalog Public Interfaces: Interfaces Business Logic Data Stores

15. LMS / ERM: Fragmented Model Circulation BIB Staff Interfaces: Holding / Items Circ Transact UserVendorPolicies $$$ Funds CatalogingAcquisitionsSerialsOnline Catalog Public Interfaces: Application Programming Interfaces ` License Management License Terms E-resource Procurement Vendors E-Journal Titles Protocols: CORE

16. Common approach for ERM Circulation BIB Staff Interfaces: Holding / Items Circ Transact UserVendorPolicies $$$ Funds CatalogingAcquisitionsSerialsOnline Catalog Public Interfaces: Application Programming Interfaces Budget License Terms Titles / Holdings Vendors Access Details

17. Comprehensive Resource Management  No longer sensible to use different software platforms for managing different types of library materials  ILS + ERM + OpenURL Resolver + Digital Asset management, etc. very inefficient model  Flexible platform capable of managing multiple type of library materials, multiple metadata formats, with appropriate workflows

18. Libraries need a new model of library automation  Not an Integrated Library System or Library Management System  The ILS/LMS was designed to help libraries manage print collections  Generally did not evolve to manage electronic collections  Other library automation products evolved:  Electronic Resource Management Systems – OpenURL Link Resolvers – Digital Library Management Systems -- Institutional Repositories

19. 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

20. 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  New structures not yet invented  Open APIs for extensibility and interoperability

21. Consolidated index Unified Presentation Layer Search: Digital Coll ProQuest EBSCO … JSTOR Other Resources New Library Management Model ` API Layer Library Services Platform Learning Management Enterprise Resource Planning Stock Management Self-Check / Automated Return Authentication Service Smart Cad / Payment systems Discovery Service

22. Library Services Platforms Category WorldShare Management Services AlmaIntota 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. Consolidate workflows, unified management: print, electronic, digital; Hybrid data model Knowledgeba se driven. Pure multi- tenant SaaS Service-oriented architecture Technology 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 Open Source

23. Development Schedule WorldShare Management Services AlmaIntota Sierra Services Platform Kuali OLE General Release in July 2011 38 now in production Development partners now in Release 5 General Release expected mid- 2012 Phase I: Late in 2012; Libraries in production by 2014 Phase 1: Mid- 2012 with full Millennium functionality; subsequent phases that expand model Version 1.0 expected 1Q 2013 Partners begin migration in 2013

24. SkyRiver / Innovative  Provide technology to support individual libraries and consortia  No knowledge base for e-resources  No index-based discovery

25. Mergers and Acquisitions http://www.librarytechnology.org/automationhistory.pl

26. Different Business Models  Private, investor owned: Ex Libris, SirsiDynix, Innovative, Serials Solutions  Private, founder owned: VTLS, The Library Corporation, Follett, Axiell  Public: Auto-Graphics  Non-profit: OCLC

27. Is OCLC a Monopoly?  Dominant in multiple business activities  Bibliographic services  Interlibrary loan processing  Proxy services  Competes in other sectors  Library automation  Gained a presence through mergers and acquisitions  Developed WorldShare Platform as new product in library management arena  Digital asset management: CONTENTdm

28. Different Business structures  OCLC Established as a Ohio-based non-profit in 1967. 2011 figures:  $205.6 million in revenue  23,815 members  Innovative founded as a for-profit in 1978  311 personnel  1,425 installations of Millennium  ~90 million  SkyRiver founded in 2009 as a for-profit

29. Profit versus non-profit Status  Competitive issue?  Non-profit global organization  Operates a variety of for-profit business units, mostly in Europe

30. Library Automation Industry Trends  Mergers and Acquisitions  Consolidation into a smaller number of larger companies  Increased involvement of Private Equity investments

31. Private Equity Involvement  Leeds Equity Partners: Ex Libris (Since 2009)  Vista Equity Partners: SirsiDynix (Since 2006)  JMI Equity: Innovative Interfaces (Since 2012)  Huntsman Gay: Innovative Interfaces (Since 2012)  One Equity Partners: Bibliotheca (Since 2010)  Bibliotheca RFID, Intellident, ITG  Golden Gate Capital: Infor Library Systems (Since 2005)  Formerly Geac

32. OCLC’s Previous ILS Involvement  1982: acquired Total Library system from Claremont Colleges  1983: acquired Integrated Library System from Lister Hill Center  1983: Acquires Avatar (support for ILS)  1983 – 1990: develops and markets LS/2000 based on acquired products  1987: OCLC acquires ALIS I / II from Data Phase, rebranded to LS/2  1990: Divests LS/2000 and support contracts to Ameritech

33. OCLC ILS involvement 1990’s  1993: Acquires Information Dimensions, Inc. from Battelle Memorial Institute  1997: OCLC divests Information Dimensions to Gores Technology Group. (has since become part of OpenText)

34. OCLC’s Business Acquisitions – 2000s  2011: BOND GmbH: Bibliotheca2000 used in Germany, Austria  2008: Amlib from InfoVision: used in Australia, UK, and many other regions  2008: OCLC acquires EZproxy from Useful Utilities  Dominant product for remote authentication 2007: OCLC acquires remaining shares of OCLC PICA 2006: OCLC acquires Openly Informatics 2Cate knowledgebase and linking technologies  2006: OCLC acquires CONTENTdm from DiMeMa 2005: Fretwell Downing: OLIB2, VDX, XPORTAL, etc 2005: Sisis Informationssysteme (Sunrise) 1999: OCLC acquires 60 percent ownership of PICA BV LBS, CBS Local and consortial platforms

35. OCLC Bibliographic Services acquisitions  1968: OCLC founded as a bibliographic utility  1997: OCLC acquires Blackwell North America authority control business  1997: Bibliocentre joins OCLC  1999: OCLC acquires Library Technical Services, based in Winnipeg, Canada  1999: OCLC acquires Western Library Network (WLN)  2006: OCLC Acquires Research Libraries Group

36. WorldCat Growth Since 1998 Source: 2011 OCLC Annual Report

37. Innovative / SkyRiver Business History  1978: Innovative founded by Jerry Kline and Steve Silberstein  1997: Innovative acquires LIBERTAS system from UK-based SLS  2001: Jerry Kline buys out interests of Silberstein to become sole owner of company  2009: Kline founds SkyRiver Technologies  2012: Majority acquisition by JMI Equity and Huntsman Gay

38. General Competitive Environment in Bibliographic Services  OCLC: Dominant in United States, with varying levels of involvement in other geographic regions  235.8 million bibliographic records  Auto-Graphics: MARCit  21 million records  The Library Corporation: ITS.MARC  41 million records  Launched 1987  Library Technologies, Inc: Authority Control Service  Marcive: authority processing services  Serials Solutions / Bowker: Books in Print / MARC record service, etc.

39. Intellectual Property Issues  OCLC WorldCat records governed by Rights and Responsibilities statement  Positioned as guidelines, not restrictions  Positioned as Consistent with Creative Commons Attribution License  Harvard University released bibliographic records as CC0  SkyRiver asserts no ownership on their database

40. Bibliographic Records as a Commodity  Increasing numbers of bibliographic records freely available:  Library of Congress  British Library  Open Library  Harvard University  Other National libraries  Technologies or platforms to aggregate data increasingly available

41. OCLC Pricing Issue  $0.23 = typical price for loading records into WorldCat (MSU annual price ~ $6,000)  Michigan State University quoted price of $54,000 for 6 months for Data and Stewardship Service  (Letter from OCLC VP Bruce Crocco to MSU Assistant Director Nancy Fleck)  $2.85 per record effective price to MSU to load SkyRiver Records  Also see open letter from MSU Library Director Clifford H. Haka regarding pricing issue  MSU continues as OCLC member and ILL Subscriber  Loading new records for lending recent materials

42. Implications of the SkyRiver vs OCLC Lawsuit  Impact on the industry if ruling in favor of SkyRiver  Impact on the industry if ruling in favor of OCLC  Impact on the industry if settled out of court

43. Ruling in favor of SkyRiver  Some kind of relief relative to alleged anti- competitive pricing  Standard bibliographic service price regardless of participation in other services?  Forced restructuring of OCLC business activities?  Restrictions on how participation in Cataloging services can be tied to ILL or WMS

44. Ruling in favor of OCLC  Status quo  Removes pressure for OCLC to accommodate bibliographic records created externally at standard member prices

45. Impact on Current OCLC Strategies  OCLC moving toward more emphasis on comprehensive library management service  WorldShare Management Services  Bibliographic records increasingly seen as a commodity.  Difficult to see major impact on WMS from either outcome of current lawsuit