Advances in Automation: Business and Technology Trends Marshall Breeding Independent Consultant, Author, and Founder and Publisher, Library Technology Guides http://www.librarytechnology.org/ http://twitter.com/mbreeding April 9, 2013 Computers in Libraries 2013

Library Technology Guides www.librarytechnology.org

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

Sources Library Journal Automation Marketplace Feature 2013 edition published April 2 Perceptions Surveys 2012 edition just published http://www.librarytechnology.org/perceptions2012.pl Turnover Reports: http://www.librarytechnology.org/ils- turnover.pl?Year=2012 http://www.librarytechnology.org/ils-turnover- reverse.pl?Year=2012

Perceptions 2012 Annual survey for Libraries Satisfaction levels for http://www.librarytechnology.org/perceptions2012.pl Annual survey for Libraries Satisfaction levels for Company Current ILS Service Loyalty Migration Plans 3030 Responses 67 Countries

Perceptions Survey 2012 Product Satisfaction for Medium to Large Public Libraries

LJ Automation Marketplace Annual Industry report published in Library Journal: 2013: Rush to Innovate 2012: Agents of Change 2011: New Frontier: battle intensifies to win hearts, minds and tech dollars 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

Industry Revenues $1.8 billion global industry $770 million from companies involved in the US $475 million from US Libraries

Industry Giants Ex Libris: SirsiDynix: Innovative 3,729 customer libraries 522 FTE Employed SirsiDynix: 3,616 libraries 369 FTE Employed Innovative 341 FTE employed 1436 libraries

Personnel Resources OCLC 1250 Ex Libris 189 222 53 46 12 522 Company Dev Sup Sales Admin Other Total OCLC   1250 Ex Libris 189 222 53 46 12 522 SirsiDynix 86 168 52 22 41 369 Follett Software Company 78 151 81 31 341 Innovative Interfaces, Inc. 89 161 7 Serials Solutions 131 51 3 20 256 The Library Corporation 39 91 28 13 199 Polaris Library Systems 27 18 2 93 VTLS Inc. 29 37 9 4 Book Systems, Inc. 15 16 59 EOS International 17 50 Auto-Graphics, Inc. 11 6 35

Personnel Resources: Open Source Company Dev Sup Sales Admin Other Total PTFS -- LibLime 5 16 3 8 155 Equinox Software 4 6 2 20 ByWater Solutions 12 1 13

Mergers and Acquisitions Activity

Mergers and Acquisitions

Innovative Interfaces 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

III calls ceasefire with OCLC Drops pending anti-trust lawsuit Library Technology Guides resource on lawsuit: http://www.librarytechnology.org/web/breeding/skyriv er-vs-oclc/ Folds SkyRiver Technologies into III Same ownership structure as Innovative Will continue to offer competitive bibliographic services Knowledge bases an important asset

Ex Libris Group 2012 - Golden Gate Capital 2008 – 2012 Leeds Equity Partners 2006 – 2008 Francisco Partners Golden Gate Capital acquired Geac in Nov 2005 Now Infor Library and Information Systems

Web-scale Index-based Discovery ILS Data Web-scale Index-based Discovery (2009- present) Digital Collections Search: Web Site Content Institutional Repositories Search Results Aggregated Content packages Consolidated Index … E-Journals Your title is covered up with the ILS data content – DISCO instead of Discovery Usage-generated Data Customer Profile Reference Sources Pre-built harvesting and indexing

Discovery Service Statistics Discovery Product 2007 2008 2009 2010 2011 2012 Installed EBSCO Discovery Serv ~3961 Primo 12 37 53 506 111 101 1151 AquaBrowser 55 339 64 69 74 58   Encore 72 109 56 365 LS2 PAC 46 77 88 73 305 Summon 50 164 214 158 504 SirsiDynix Enterprise 16 75 100 102 328 Civica Sorcer 7 22 3 Axiell Arena 61 57 33 104 247 Chamo 10 34 23 86

Recent ILS Industry Contracts Company Product 2009 2010 2011 2012 OCLC WMS 184 163 Innovative Interfaces Sierra   206 117 Ex Libris Alma 8 24 17 SirsiDynix Symphony  - 126 122 104 Millennium 45 39 32 30 Library Corporation Library.Solution 43 48 13 Aleph 47 25 26 VTLS Virtua 18 22 14 Polaris Polaris ILS 33 23 53 Biblionix Apollo 55 87 79 80 ByWater Solutions Koha 7 44 54 34 PTFS LibLime LibLime Academic Koha 5 LibLime Koha 27 37 Equinox Software Evergreen 15 21

Transition to Library Services Platforms New platforms take the stage Ex Libris Alma, OCLC WorldShare Management Services, Serials Solutions 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 Staff Interfaces: Public Interfaces: Interfaces Business Logic Circulation Cataloging Acquisitions Serials Online Catalog Data Stores BIB Holding / Items Circ Transact User Vendor $$$ Funds Policies

2005 – Present ILS / ERM Fragmentation Circulation BIB Staff Interfaces: Holding / Items Circ Transact User Vendor Policies $$$ Funds Cataloging Acquisitions Serials Online Catalog Public Interfaces: Application Programming Interfaces ` E-resource Procurement License Management Protocols: CORE E-Journal Titles Vendors License Terms

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

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

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

Development Schedule WorldShare Management Services Alma Intota Sierra Services Platform Kuali OLE General Release in July 2011 ~100 now in production Several development partners and early adopters in production Libraries in production by 2014 200+ contracts completed, many libraries in production (~100?)  Version 1.0 expected Dec 2013 Partners begin migration in 2013

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 Full integration of e-book discovery and lending Partnership with 3M Cloud Library Continues to see strong sales

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/201 2/2012.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 189 personnel in development out of 522

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

Serials Solutions Focus on Academic Libraries Summon: first Web-scale Discovery Service Summon 2.0 announced for summer 2013 Intota: Planned Library Services Platform

Polaris Major competitor for public libraries Mid-sized company (86 employees) Focus: Market: US Public Libraries Technology: MS Windows platform Strong customer service performance

Polaris user interface strategy Positions PowerPAC as discovery service Relevancy, facets, book jackets, etc. Almost all implementations use PowerPAC except when already in place: Phoenix: Endeca Boston Public: BiblioCommons E-book integration with 3M Library Systems Example of aggressive integration strategy

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 2013 Additional grant from Mellon Foundation in 2012 to extend development Version 1.0 scheduled for Dec 2013 GOKb project started in 2012 for e-resource management

Time to Invest in Technology Libraries in general lack the proper tools to manage and deliver access to their reshaped collections Library and campus tools may seem stilted and primitive relative to what students experience outside the campus domain Tradition of under-investment and deferred maintenance or replacements of technology infrastructure in the library Dearth of transformative technology options?

Time to engage 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