1. LIBRARY TECHNOLOGY INDUSTRY UPDATE : BUSINESS AND TECHNOLOGY TRENDS Marshall Breeding Independent Consultant, Author, and Founder and Publisher, Library Technology Guides http://librarytechnology.org/ http://twitter.com/mbreeding 29 October, 2014 Internet Librarian 2014

2. 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.

3. Sources  American Libraries Library Systems Report  2014 online edition published April 15  Perceptions Surveys  2014 edition recently published  http://librarytechnology.org/perceptions2013.pl http://librarytechnology.org/perceptions2013.pl  Turnover Reports:  http://www.librarytechnology.org/ils- turnover.pl?Year=2013 http://www.librarytechnology.org/ils- turnover.pl?Year=2013  http://www.librarytechnology.org/ils-turnover- reverse.pl?Year=2013 http://www.librarytechnology.org/ils-turnover- reverse.pl?Year=2013

4. Library Technology Guides librarytechnology.org

5. Mergers and Acquisitions http://librarytechnology.org/mergers

6. 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 LibrariesLibrary Journal

7. Library Systems Report 2014

8. Library Systems Report 2014 Arabic

9. Library Systems Report 2014 Spanish http://www.thinkepi.net

10. Library Systems Report Tables http://www.americanlibrariesmagazine.org

11. Perceptions 2013  http://www.librarytechnology.org/perceptions2013.pl http://www.librarytechnology.org/perceptions2013.pl  Annual survey for Libraries  Satisfaction levels for  Company  Current ILS  Service  Loyalty  Migration Plans  3002 Responses  53 Countries

12. Perceptions Survey 2013  Product Satisfaction for Large Public Libraries

13. American Libraries Library Systems Report  Library Systems Report 2014: Strategic Competition and Cooperation  Online Publication: April 15, 2014  Covers 2013+ calendar year activities

14. 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

15. 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 LibrariesLibrary Journal

16. Industry Revenues  $1.8 billion global industry  $790 million from companies involved in the US  $485 million from US Libraries

17. 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

18. Personnel Resources 2013 2013 2012 CompanyDevSupSalesAdminOtherTotal EBSCO Information Services 424869554988622807 OCLC 12801250 Ex Libris 194222604614536 522 SirsiDynix 102170532040385 369 EOS International 50 Follett Software Company 120164521015361 341 Innovative Interfaces, Inc. 10318461557410 341 Serials Solutions 1246352511255 256 The Library Corporation 4193251327199 Polaris Library Systems 2750173 97 93 VTLS 253589 77 86 Equinox Software 5722218 20 ByWater Solutions 11223 14 13

19. Personnel Resources: Open Source CompanyDevSupSalesAdminOtherTotal PTFS -- LibLime516388155 Equinox Software5722218 ByWater Solutions11223018

20. Mergers and Acquisitions Activity

21. Mergers and Acquisitions

22. Mergers and Acquisitions Detail

23. Personnel Growth / Loss

24. 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

25. 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

26. 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

27. EBSCO Information Services  Internal Consolidation:  EBSCO Publishing + EBSCO Information Services  Tim Collins, President and CEO Also named CEO of EBSCO Industries

28. ProQuest  Internal Consolidation  Kurt Sanford CEO (since July 2011)  Serials Solutions brand retired  Worlflow Solutions under Kevin Sayer

29. Follett Library Solutions  Internal Consolidation  Tom Schenck, President and CEO  Follett Library Software  Follett Library Resources  Follett Educational Resources  Follett International

30. Lucidea Corporation  Ron Aspe, President and CEO  SydneyPLUS  Inmagic  Cuadra Associates

31. 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) Usage- generated Data Customer Profile

32. Discovery Service Statistics Discovery Product2010201120122013Installed EBSCO Discovery Service 1774 5612 Primo506111101 98 1407 Encore5672 36 365 Summon164214158673 SirsiDynix Enterprise75100102 123 407 Axiell Arena5733104 35 316 Chamo34723 36 128

33. Recent ILS Industry Contracts CompanyProduct20092010201120122013 OCLCWMS18416392 InnovativeSierra 206117113 Ex LibrisAlma8241731 SirsiDynixSymphony -126122104128 InnovativeMillennium453932301 TLCLibrary.Solution3043481317 Ex LibrisAleph4739252625 VTLSVirtua182213147 PolarisPolaris ILS33235330 BiblionixApollo5587798087 ByWater SolutionsKoha744543468 PTFS LibLimeLibLime Academic Koha 756 PTFS LibLimeLibLime Koha 44273730 EquinoxEvergreen1815213712

34. 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

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

36. 2005 – Present ILS / ERM Fragmentation 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

37. 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

38. 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

39. 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

40. 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 based on central data: stores WorldCat + holdings + Items 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

41. Development Schedule WorldShare Management Services AlmaIntota Sierra Services Platform Kuali OLE General Release in July 2011 ~200 now in production First 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 2013 Version 2.0 underway Summer 2014 implementations at University of Chicago and Lehigh University

42. 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

43. 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

44. Notable Companies

45. 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/201 2/2012.pdf

46. 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

47. 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

48. 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

49. 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

50. 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)

51. 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

52. 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

53. Open Source Integrated Library Systems  Major thread in library systems development  Koha  Evergreen  Kuali OLE

54. 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

55. Koha Libraries Worldwide

56. 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

57. Evergreen Libraries Worldwide

58. 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

59. 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

60. 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

61. 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

62. 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

63. Questions and discussion