Una Introducción a la Una Introducción a la Industria Internacional de Industria Internacional de

Automatización de Automatización de Bibliotecas.Bibliotecas.

Marshall BreedingMarshall BreedingDirector for Innovative Technologies and ResearchDirector for Innovative Technologies and Research

Vanderbilt UniversityVanderbilt Universityhttp://http://staffweb.library.vanderbilt.edustaffweb.library.vanderbilt.edu/breeding/breeding

http://http://www.librarytechnology.orgwww.librarytechnology.org//

AbstractAbstract

““An introduction to the international An introduction to the international library automation industry” library automation industry” which will which will present information on the major companies present information on the major companies and products, trends such as business and products, trends such as business consolidation, globalization, and company consolidation, globalization, and company performance. performance.

Vanderbilt University LibraryVanderbilt University Library

Library Technology GuidesLibrary Technology Guides

http://www.librarytechnology.orghttp://www.librarytechnology.org

Repository for library automation dataRepository for library automation data Lib-web-cats tracks 38,000 libraries and the Lib-web-cats tracks 38,000 libraries and the

automation systems used. automation systems used. – Expanding to include more international scopeExpanding to include more international scope

Announcements and developments made Announcements and developments made by companies and organizations involved in by companies and organizations involved in library automation technologieslibrary automation technologies

¿¿Quienes es QuienesQuienes es Quienes??

KohaKoha– Open Source ILSOpen Source ILS

PérgamoPérgamo– CommercialCommercial ILS software ILS software– DistributedDistributed by by WalySoftWalySoft

Aguapey Aguapey – Biblioteca Nacional de MaestrosBiblioteca Nacional de Maestros – ILS por bibliotecas de las escuelasILS por bibliotecas de las escuelas

Marco PoloMarco Polo CatalisCatalis Punto BiblioPunto Biblio SiGeBi – CONABIPSiGeBi – CONABIP

– Systema de Gestion BibliotecariaSystema de Gestion Bibliotecaria

¿¿Quienes es Quienes? (cont)Quienes es Quienes? (cont)

Dominant software used by libraries and Dominant software used by libraries and information centers throughout Latin Americainformation centers throughout Latin America

Distributed without cost by UNESCODistributed without cost by UNESCO Many different programs:Many different programs:

– CDS/ ISISCDS/ ISIS– WinIsisWinIsis– WwwisisWwwisis

Open Source ILS under developmentOpen Source ILS under development– ABCDABCD

ILS from Global Automation ILS from Global Automation CompaniesCompanies

SirsiDynix UnicornSirsiDynix Unicorn– Pontificia Universidad Católica ArgentinaPontificia Universidad Católica Argentina

Ex Libris ALEPH 500Ex Libris ALEPH 500– Universidad de San AndresUniversidad de San Andres

OCLCOCLC

Not a major factor for most libraries in Not a major factor for most libraries in ArgentinaArgentina

Observations about Library Observations about Library Automation in ArgentinaAutomation in Argentina

Small fraction of libraries use commercial Small fraction of libraries use commercial products from global vendorsproducts from global vendors

Very little involvement with OCLCVery little involvement with OCLC CDS/ISIS software prevailsCDS/ISIS software prevails Interest in open source for new projectsInterest in open source for new projects Most libraries automate independently Most libraries automate independently

rather than cooperativelyrather than cooperatively

Impact of Politics and GeographyImpact of Politics and Geography

Each Region of the world has its own specific Each Region of the world has its own specific needsneeds

Resources available for library automation varyResources available for library automation vary Library automation needs and capacities varies by Library automation needs and capacities varies by

geographic, political, and economic situationgeographic, political, and economic situation Tremendous variation within each regionTremendous variation within each region

– Many small, rural libraries in the United States remain Many small, rural libraries in the United States remain without automationwithout automation

– In the United Kingdom, the government provides library In the United Kingdom, the government provides library services to each libraryservices to each library

Global Library TrendsGlobal Library Trends

Physical collections continue to play a large Physical collections continue to play a large role, but play a diminishing rolerole, but play a diminishing role

Emphasis on resource sharingEmphasis on resource sharing Dramatic increases in digital contentDramatic increases in digital content Competition with other information providers Competition with other information providers

on the Webon the Web Library as provider of collaborative learning Library as provider of collaborative learning

spacesspaces

Trends (continued)Trends (continued)

Technology center for UniversitiesTechnology center for Universities Integration with other academic information Integration with other academic information

systemssystems– Courseware, Student Records, distance education toolsCourseware, Student Records, distance education tools

Library as locus for physical and digital Library as locus for physical and digital preservationpreservation

Custodian for the intellectual output of the Custodian for the intellectual output of the academic institutionacademic institution

Question: How true are these trends in Argentina?Question: How true are these trends in Argentina?

Business TrendsBusiness Trends

A look at the companies involved in library A look at the companies involved in library automation and related technologiesautomation and related technologies

Automation System MarketplaceAutomation System Marketplace

Annual Industry report published in Annual Industry report published in Library JournalLibrary Journal 2008: Opportunity out of turmoil (Mostly North 2008: Opportunity out of turmoil (Mostly North

American perspective)American perspective) 2007: An industry redefined 2007: An industry redefined 2006: Reshuffling the deck 2006: Reshuffling the deck 2005: Gradual evolution 2005: Gradual evolution 2004: Migration down, innovation up 2004: Migration down, innovation up 2003: The competition heats up 2003: The competition heats up 2002: Capturing the migrating customer 2002: Capturing the migrating customer

Business Landscape: Business Landscape: 2007-2008 2007-2008

An increasingly consolidated industryAn increasingly consolidated industry Venture Capital and Private Equity playing a stronger role Venture Capital and Private Equity playing a stronger role

then ever beforethen ever before Moving out of a previous phase of fragmentation where Moving out of a previous phase of fragmentation where

many companies expend energies producing decreasingly many companies expend energies producing decreasingly differentiated systems in a limited marketplacedifferentiated systems in a limited marketplace

Narrowing of product options Narrowing of product options Open Source opportunities rise to challenge stranglehold of Open Source opportunities rise to challenge stranglehold of

traditional commercial modeltraditional commercial model International: Country-specific companies seeing more International: Country-specific companies seeing more

competition from international vendorscompetition from international vendors

Other Business FactorsOther Business Factors

Level of innovation falls below expectationsLevel of innovation falls below expectations Companies struggle to keep up with ILS Companies struggle to keep up with ILS

enhancements and R&D for new innovations.enhancements and R&D for new innovations. Pressure within companies to reduce costs, Pressure within companies to reduce costs,

increase revenue increase revenue Pressure from libraries for more innovative Pressure from libraries for more innovative

productsproducts Pressure from libraries not to increase costsPressure from libraries not to increase costs Many libraries lack top quality automation systems Many libraries lack top quality automation systems

due to high costdue to high cost

Library Automation M&A HistoryLibrary Automation M&A History

Consolidation among Libraries Consolidation among Libraries for automation -for automation -

More libraries banding together to share automation More libraries banding together to share automation environmentenvironment

Reduce overhead for maintaining systems that have Reduce overhead for maintaining systems that have decreasing strategic importancedecreasing strategic importance

Need to focus technical talent on activities that have more Need to focus technical talent on activities that have more of an impact on the mission of the libraryof an impact on the mission of the library

Pooled resources for technical processingPooled resources for technical processing Single library ILS implementations becoming less Single library ILS implementations becoming less

defensibledefensible Essential for libraries to gain increased leverage relative to Essential for libraries to gain increased leverage relative to

large companieslarge companies Moving toward a smaller number of larger ILS installationsMoving toward a smaller number of larger ILS installations

Why worry about who owns the Industry?Why worry about who owns the Industry?

Important to determine best long-term partner for Important to determine best long-term partner for strategic library developmentstrategic library development

Some of the most important decisions that affect the Some of the most important decisions that affect the options available to libraries are made in the options available to libraries are made in the corporate board room.corporate board room.

Increased control by financial interests of private Increased control by financial interests of private equity and venture capital firmsequity and venture capital firms

Recent industry events driven by external corporate Recent industry events driven by external corporate decisions; decisions;

Market success and technological advantages don’t Market success and technological advantages don’t necessarily drive business decisionsnecessarily drive business decisions

Investor owned companiesInvestor owned companies

SirsiDynix -> Vista Equity Partners (bought out SirsiDynix -> Vista Equity Partners (bought out Seaport Capital + Hicks Muse/HM Capital in Dec Seaport Capital + Hicks Muse/HM Capital in Dec 2006)2006)

Ex Libris -> Francisco Partners (bought out VC’s in Ex Libris -> Francisco Partners (bought out VC’s in Jul 2006)Jul 2006)

Endeavor -> Francisco Partners (bought out Endeavor -> Francisco Partners (bought out Elsevier Nov 2006)Elsevier Nov 2006)

Infor (was Extensity, was Geac) -> Golden GateInfor (was Extensity, was Geac) -> Golden Gate Civica -> 3i Investors (private equity)Civica -> 3i Investors (private equity)

Public companies: Public companies:

Auto-GraphicsAuto-Graphics– De-listed from SEC reporting requirementsDe-listed from SEC reporting requirements– Was OTC:AUGR now Pink Sheets:AUGR Was OTC:AUGR now Pink Sheets:AUGR

Founder / Family owned companiesFounder / Family owned companies

Innovative InterfacesInnovative Interfaces– 100% ownership by Jerry Kline following 2001 100% ownership by Jerry Kline following 2001

buy-out of partner Steve Silberstienbuy-out of partner Steve Silberstien

The Library Corporation The Library Corporation – Owned by Annette Murphy familyOwned by Annette Murphy family

VTLS – tech spin-off from Virginia Tech, VTLS – tech spin-off from Virginia Tech, wholly owned by Vinod Chachrawholly owned by Vinod Chachra

These companies not under the control of These companies not under the control of external financial interestsexternal financial interests

Revenue sources Revenue sources

License fees for new ILS contractsLicense fees for new ILS contracts Maintenance supportMaintenance support

– 15% purchase cost annually with inflation 15% purchase cost annually with inflation adjustmentsadjustments

Non-ILS softwareNon-ILS software Library ServicesLibrary Services

Diverse Business Activities -Diverse Business Activities -

Many ways to expand business in ways that Many ways to expand business in ways that leverage library automation expertise:leverage library automation expertise:– Non-ILS software: link resolvers, federated search, Non-ILS software: link resolvers, federated search,

ERM, portal/alternative Web interfacesERM, portal/alternative Web interfaces– Retrospective conversion servicesRetrospective conversion services– RFID or Automated materials handlingRFID or Automated materials handling– Network Consulting ServicesNetwork Consulting Services– Content productsContent products– Imaging servicesImaging services

Libraries Demand choice Libraries Demand choice

Current market narrowing optionsCurrent market narrowing options Consolidation working toward monopoly?Consolidation working toward monopoly? Many smaller companies currently prosper in the library Many smaller companies currently prosper in the library

automation industryautomation industry Room for niche playersRoom for niche players Domination by a large monopoly unlikely to be accepted by Domination by a large monopoly unlikely to be accepted by

library communitylibrary community Monopoly would be subverted by Open Source or other Monopoly would be subverted by Open Source or other

cooperative movementcooperative movement Many countries and regions continue to be served by local Many countries and regions continue to be served by local

companiescompanies

ILS DefectionsILS Defections

Horizon: Horizon: 196196 Unicorn: Unicorn: 187187 Millennium:Millennium: 2525 Virtua:Virtua: 1414 Aleph 500:Aleph 500: 55

Business Development StrategyBusiness Development Strategy

Essential to understand the strategic business Essential to understand the strategic business plans of the companyplans of the company– Long term growth?Long term growth?– Short term profits?Short term profits?– Growth through M&AGrowth through M&A– Organic growth by attracting new customer librariesOrganic growth by attracting new customer libraries– Positioning for sale?Positioning for sale?

Get past press releases and spin and look closely Get past press releases and spin and look closely at the corporate behavior. at the corporate behavior.

Major International ILS Major International ILS productsproducts

ALEPH 500ALEPH 500

ILS Developed by Ex Libris GroupILS Developed by Ex Libris Group Specialized system for large academic Specialized system for large academic

libraries, national libraries, and consortialibraries, national libraries, and consortia Adopted by libraries throughout the worldAdopted by libraries throughout the world

– Israel, Europe, United Kingdom, United States, Israel, Europe, United Kingdom, United States, Asia, Latin AmericaAsia, Latin America

Long-term prospects: eventual transition to Long-term prospects: eventual transition to URMURM

$$$$$$$$

Millennium Millennium

ILS developed by Innovative InterfacesILS developed by Innovative Interfaces Generalized system for many library types: Generalized system for many library types:

Academic, Public, Law, MedicalAcademic, Public, Law, Medical Highly regarded for its technical services Highly regarded for its technical services

sophisticationsophistication Geographic Distribution:Geographic Distribution:

– United States, Canada, Asia, United Kingdom, Europe, United States, Canada, Asia, United Kingdom, Europe, Lain AmericaLain America

Long term prospects: commitment to continued Long term prospects: commitment to continued product evolutionproduct evolution

$$$$$$$$

VoyagerVoyager

ILS Developed by Endeavor Information Systems, ILS Developed by Endeavor Information Systems, acquired by Elsevier and later Ex Libris Groupacquired by Elsevier and later Ex Libris Group

Specialized system for Academic Libraries, Specialized system for Academic Libraries, National librariesNational libraries

Geographic Distribution:Geographic Distribution:– United States, Australia, Europe, UKUnited States, Australia, Europe, UK

Long term prospects: Long term prospects: – better development under Ex Libris than Elsevierbetter development under Ex Libris than Elsevier– Eventual transition to URMEventual transition to URM

Minimal new salesMinimal new sales

Unicorn / SymphonyUnicorn / Symphony

ILS developed by Sirsi Corporation, now ILS developed by Sirsi Corporation, now SirsiDynixSirsiDynix

Generalized system for Public Libraries, Generalized system for Public Libraries, Academic, GovernmentAcademic, Government

Geographic Distribution:Geographic Distribution:– United States, Canada, Australia, United Kingdom, United States, Canada, Australia, United Kingdom,

Europe, Latin AmericaEurope, Latin America Long term prospects: continued gradual evolutionLong term prospects: continued gradual evolution Significant defection rateSignificant defection rate New sales declining. New sales declining.

HorizonHorizon

ILS Developed by Dynix Corporation, acquired by ILS Developed by Dynix Corporation, acquired by SirsiDynixSirsiDynix

Generalized system for Academic Libraries, Public Generalized system for Academic Libraries, Public Libraries, Special Libraries, Special

Geographic distribution: Geographic distribution: – United States, Canada, Australia, United Kingdom, United States, Canada, Australia, United Kingdom,

EuropeEurope Long term prospects: None. Only maintenance Long term prospects: None. Only maintenance

development continuesdevelopment continues Defection rate high, most libraries will leave this Defection rate high, most libraries will leave this

system within 2-5 yearssystem within 2-5 years

VirtuaVirtua

ILS Developed by VTLSILS Developed by VTLS Generalized system for Academic Libraries, Generalized system for Academic Libraries,

Public, National, other special librariesPublic, National, other special libraries Geographic distribution:Geographic distribution:

– Europe, Asia, Australia, United StatesEurope, Asia, Australia, United States

Defection rate high. (NYU, Oxford) Defection rate high. (NYU, Oxford) Recent project for ILS to Queens Public Recent project for ILS to Queens Public

LibraryLibrary

Beyond the ILSBeyond the ILS

Other essential library automation Other essential library automation productsproducts

Link ResolversLink Resolvers

SFX from Ex Libris GroupSFX from Ex Libris Group 360 Link from Serials Solutions360 Link from Serials Solutions

Federated SearchFederated Search

360 Search from Serials Solution360 Search from Serials Solution WebFeat (acquired by Serials Solution)WebFeat (acquired by Serials Solution) MetaLib from Ex Libris GroupMetaLib from Ex Libris Group

Electronic Resource ManagementElectronic Resource Management

Verde from Ex Libris GroupVerde from Ex Libris Group 360 Resource Manager from Serials 360 Resource Manager from Serials

SolutionsSolutions Electronic Resource Management from Electronic Resource Management from

Innovative InterfacesInnovative Interfaces

Library Automation Library Automation CompaniesCompanies

Innovative InterfacesInnovative Interfaces

Privately owned by one of this foundersPrivately owned by one of this founders No involvement with VC or Private equityNo involvement with VC or Private equity No recent involvement in M&ANo recent involvement in M&A

– Acquired SLS in 1997Acquired SLS in 1997 Evolutionary Product strategyEvolutionary Product strategy

– Innopac -> Millennium beginning in 1995Innopac -> Millennium beginning in 1995 Millennium as core technologyMillennium as core technology

– Encore, RightResults, ResearchProEncore, RightResults, ResearchPro

Ex LibrisEx Libris

Global provider of software to Academic LibrariesGlobal provider of software to Academic Libraries Largest in the academic marketLargest in the academic market Owned by Francisco PartnersOwned by Francisco Partners Acquired Endeavor in Nov 2006Acquired Endeavor in Nov 2006 Strong focus on non-ILS products:Strong focus on non-ILS products:

– SFX – MetaLib – Verde – DigiTool – PrimoSFX – MetaLib – Verde – DigiTool – Primo

Continues to support and develop ALEPH and Continues to support and develop ALEPH and VoyagerVoyager

SirsiDynixSirsiDynix

Highly consolidated company Highly consolidated company – Sirsi Corp, Dynix, DRA, MultiLIS, INLEX/300, Docutec, OCLC Local Sirsi Corp, Dynix, DRA, MultiLIS, INLEX/300, Docutec, OCLC Local

Systems, DataPhase, Electric Memory, NOTIS SystemsSystems, DataPhase, Electric Memory, NOTIS Systems Largest in the industryLargest in the industry Owned by Vista Equity PartnersOwned by Vista Equity Partners

– Previously supported by VC: Seaport Capital, Hicks Muse)Previously supported by VC: Seaport Capital, Hicks Muse) Consolidated company working toward consolidating and Consolidated company working toward consolidating and

integrating products and business units.integrating products and business units. Recent announcement for single Unicorn-based ILSRecent announcement for single Unicorn-based ILS

CivicaCivica

UK Company; library automation unit based in UK Company; library automation unit based in AustraliaAustralia

Recently purchased by 3i private equity firmRecently purchased by 3i private equity firm Large company with software products across Large company with software products across

several sectors, specializing in systems for public several sectors, specializing in systems for public governmental authoritiesgovernmental authorities

Spydus library automation system one of many Spydus library automation system one of many business unitsbusiness units– Originated in Australia, deployed in many other Originated in Australia, deployed in many other

geographic regionsgeographic regions

OCLC in the ILS arena?OCLC in the ILS arena?

Increasingly overlapped with library automation activitiesIncreasingly overlapped with library automation activities WorldCat Local recently announcedWorldCat Local recently announced

– Penetrating deeper into local librariesPenetrating deeper into local libraries Library-owned cooperative on a buying binge of automation Library-owned cooperative on a buying binge of automation

companies:companies:– Openly InformaticsOpenly Informatics– Fretwell-Downing InformaticsFretwell-Downing Informatics– Sisis InformationssystemeSisis Informationssysteme– Infovision (Amlib)Infovision (Amlib)– PICA (now 100%)PICA (now 100%)– DiMeMa (CONTENTdm)DiMeMa (CONTENTdm)

ILS companies concerned about competing with a non-profit ILS companies concerned about competing with a non-profit with enormous resources and the ability to shift costs.with enormous resources and the ability to shift costs.

Cambridge Information GroupCambridge Information Group

Increasingly involved in library automation Increasingly involved in library automation arenaarena

ProQuest:ProQuest:– Serials SolutionsSerials Solutions– WebFeatWebFeat– AquaBrowser (Academic, North America)AquaBrowser (Academic, North America)

R.R. BowkerR.R. Bowker– AquaBrowser (worldwide)AquaBrowser (worldwide)– Syndetic SolutionsSyndetic Solutions

Major US Companies not present Major US Companies not present in Latin Americain Latin America

Follett Software CompanyFollett Software Company– K-12 School library softwareK-12 School library software– Destiny ILSDestiny ILS

The Library CorporationThe Library Corporation– Public Libraries Public Libraries – Library.Solution / Carl.SolutionLibrary.Solution / Carl.Solution

Polaris Library SystemsPolaris Library Systems– Public CompaniesPublic Companies– Polaris ILSPolaris ILS

Auto-GraphicsAuto-Graphics– Public LibrariesPublic Libraries– AGentAGent

International Library VendorsInternational Library Vendors

Advantages and IssuesAdvantages and Issues

StabilityStability

Some international vendors may have better Some international vendors may have better means to survive compared to local country means to survive compared to local country businessesbusinesses

In many regions the global companies have In many regions the global companies have stepped in as local companies declinestepped in as local companies decline– Often local companies lack resources to re-Often local companies lack resources to re-

develop through technology cyclesdevelop through technology cycles

Still risky. Mergers and acquisitions can Still risky. Mergers and acquisitions can make a big impactmake a big impact

Product sophisticationProduct sophistication

International companies have large capacity International companies have large capacity for research and developmentfor research and development

Current products offer rich functionalityCurrent products offer rich functionality Support for Unicode and language Support for Unicode and language

localizationlocalization Ability to automate very complex library Ability to automate very complex library

organizationsorganizations

ConcernsConcerns

Ability to provide in-country supportAbility to provide in-country support Software optimized for automation needs of a Software optimized for automation needs of a

given region?given region? Cost. How does the international market price Cost. How does the international market price

compare to that of local options and open source, compare to that of local options and open source, and subsidized alternatives?and subsidized alternatives?

Long-term continuity of products?Long-term continuity of products?– As opportunities decline in the US and Europe, many As opportunities decline in the US and Europe, many

seek developing world as an emerging market for seek developing world as an emerging market for products products

Technology TrendsTechnology Trends

Open Source Library Automation (Afternoon Open Source Library Automation (Afternoon session)session)

Next generation library catalogs (Seminar Next generation library catalogs (Seminar Wed 10 Dec)Wed 10 Dec)

Next generation ILS (Seminar Thursday 11 Next generation ILS (Seminar Thursday 11 Dec)Dec)

Web 2.0 and Beyond (Seminar Fri 12 Dec)Web 2.0 and Beyond (Seminar Fri 12 Dec)

Questions and DiscussionQuestions and Discussion