COMPETING VISIONS FOR THE FUTURE OF LIBRARIES OCLC and SkyRiver Marshall Breeding Independent Consult, Author, Founder and Publisher, Library Technology.

COMPETING VISIONS FOR THE FUTURE OF LIBRARIES

OCLC and SkyRiver

Marshall BreedingIndependent Consult, Author, Founder and Publisher, Library Technology Guideshttp://www.librarytechnology.org/http://twitter.com/mbreeding

American Association of Law Libraries 2012

July 23, 2012

Caveats

Supportive of both organizations No bias toward preferred outcome Technology and Business perspective –

not legal

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

General Technology Trends

Discovery

Tools to help library users access library collections Online Catalog Next-gen Library Catalog Discovery Interfaces

Product development trends

Online Catalog

Books, Journals, and Media at the Title Level

Not in scope: Articles Book Chapters Digital objects Web site content Etc.

Scope of SearchSearch:

Search Results

ILS Data

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

Discovery Interface search model

Search: Digital

Collections

ProQuest

EBSCOhost

…MLA

Bibliography

ABC-CLIO

Search Results

Real-time query and responses

ILS Data

Local Index

Meta

Search

En

gin

e

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)

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)

Web-scale Search Problem

Search:

Search Results

Pre-built harvesting and indexing

Con

solid

ate

d

Index

???

Non Participating

Content SourcesProblem in how to deal with

resources not provided to ingest into consolidated index

Digital Collections

Web Site ContentInstitution

al Repositori

es

…E-Journals

ILS Data

Aggregated Content packages

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

Library Management

Tools for library personnel to manage collections and automate operations

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

LMS / ERM: Fragmented Model

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

Common approach for ERM

Circulation

BIB

Staff Interfaces:

Holding / Items

CircTransact

User Vendor Policies$$$

Funds

CatalogingAcquisitionsSerials OnlineCatalog

Public Interfaces:

Application Programming Interfaces

Budget License Terms

Titles / Holdings

Vendors

Access Details

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

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

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 New structures not yet invented

Open APIs for extensibility and interoperability

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 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 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 201138 now in production

Development partners now in Release 5General 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 2013Partners begin migration in 2013

SkyRiver / Innovative

Provide technology to support individual libraries and consortia

No knowledge base for e-resources No index-based discovery

Mergers and Acquisitionshttp://www.librarytechnology.org/automationhistory.pl

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

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

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

Profit versus non-profit Status Competitive issue? Non-profit global organization Operates a variety of for-profit business

units, mostly in Europe

Library Automation Industry Trends Mergers and Acquisitions Consolidation into a smaller number of

larger companies Increased involvement of Private Equity

investments

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

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

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)

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

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

WorldCat Growth Since 1998

Source: 2011 OCLC Annual Report

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

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.

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

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

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

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

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

Ruling in favor of OCLC

Status quo Removes pressure for OCLC to

accommodate bibliographic records created externally at standard member prices

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