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Una Introducción a la Industria Internacional de Automatización de Bibliotecas. Marshall Breeding Director for Innovative Technologies and Research Vanderbilt University http://staffweb.library.vanderbilt.edu/breeding http://www.librarytechnology.org/. Abstract.
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Una Introducción a la Industria Internacional de Automatización de Bibliotecas. Marshall BreedingDirector for Innovative Technologies and Research Vanderbilt University http://staffweb.library.vanderbilt.edu/breeding http://www.librarytechnology.org/
Abstract • “An introduction to the international library automation industry” which will present information on the major companies and products, trends such as business consolidation, globalization, and company performance.
Library Technology Guides • http://www.librarytechnology.org • Repository for library automation data • Lib-web-cats tracks 38,000 libraries and the automation systems used. • Expanding to include more international scope • Announcements and developments made by companies and organizations involved in library automation technologies
¿Quienes es Quienes? • Koha • Open Source ILS • Pérgamo • Commercial ILS software • Distributed by WalySoft • Aguapey • Biblioteca Nacional de Maestros • ILS por bibliotecas de las escuelas • Marco Polo • Catalis • Punto Biblio • SiGeBi – CONABIP • Systema de Gestion Bibliotecaria
¿Quienes es Quienes? (cont) • Dominant software used by libraries and information centers throughout Latin America • Distributed without cost by UNESCO • Many different programs: • CDS/ ISIS • WinIsis • Wwwisis • Open Source ILS under development • ABCD
ILS from Global Automation Companies • SirsiDynix Unicorn • Pontificia Universidad Católica Argentina • Ex Libris ALEPH 500 • Universidad de San Andres
OCLC • Not a major factor for most libraries in Argentina
Observations about Library Automation in Argentina • Small fraction of libraries use commercial products from global vendors • Very little involvement with OCLC • CDS/ISIS software prevails • Interest in open source for new projects • Most libraries automate independently rather than cooperatively
Impact of Politics and Geography • Each Region of the world has its own specific needs • Resources available for library automation vary • Library automation needs and capacities varies by geographic, political, and economic situation • Tremendous variation within each region • Many small, rural libraries in the United States remain without automation • In the United Kingdom, the government provides library services to each library
Global Library Trends • Physical collections continue to play a large role, but play a diminishing role • Emphasis on resource sharing • Dramatic increases in digital content • Competition with other information providers on the Web • Library as provider of collaborative learning spaces
Trends (continued) • Technology center for Universities • Integration with other academic information systems • Courseware, Student Records, distance education tools • Library as locus for physical and digital preservation • Custodian for the intellectual output of the academic institution • Question: How true are these trends in Argentina?
Business Trends A look at the companies involved in library automation and related technologies
Automation System Marketplace Annual Industry report published in Library Journal • 2008: Opportunity out of turmoil (Mostly North American perspective) • 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
Business Landscape: 2007-2008 • An increasingly consolidated industry • Venture Capital and Private Equity playing a stronger role then ever before • Moving out of a previous phase of fragmentation where many companies expend energies producing decreasingly differentiated systems in a limited marketplace • Narrowing of product options • Open Source opportunities rise to challenge stranglehold of traditional commercial model • International: Country-specific companies seeing more competition from international vendors
Other Business Factors • Level of innovation falls below expectations • Companies struggle to keep up with ILS enhancements and R&D for new innovations. • Pressure within companies to reduce costs, increase revenue • Pressure from libraries for more innovative products • Pressure from libraries not to increase costs • Many libraries lack top quality automation systems due to high cost
Consolidation among Libraries for automation - • More libraries banding together to share automation environment • Reduce overhead for maintaining systems that have decreasing strategic importance • Need to focus technical talent on activities that have more of an impact on the mission of the library • Pooled resources for technical processing • Single library ILS implementations becoming less defensible • Essential for libraries to gain increased leverage relative to large companies • Moving toward a smaller number of larger ILS installations
Why worry about who owns the Industry? • Important to determine best long-term partner for strategic library development • Some of the most important decisions that affect the options available to libraries are made in the corporate board room. • Increased control by financial interests of private equity and venture capital firms • Recent industry events driven by external corporate decisions; • Market success and technological advantages don’t necessarily drive business decisions
Investor owned companies • SirsiDynix -> Vista Equity Partners (bought out Seaport Capital + Hicks Muse/HM Capital in Dec 2006) • Ex Libris -> Francisco Partners (bought out VC’s in Jul 2006) • Endeavor -> Francisco Partners (bought out Elsevier Nov 2006) • Infor (was Extensity, was Geac) -> Golden Gate • Civica -> 3i Investors (private equity)
Public companies: • Auto-Graphics • De-listed from SEC reporting requirements • Was OTC:AUGR now Pink Sheets:AUGR
Founder / Family owned companies • Innovative Interfaces • 100% ownership by Jerry Kline following 2001 buy-out of partner Steve Silberstien • The Library Corporation • Owned by Annette Murphy family • VTLS – tech spin-off from Virginia Tech, wholly owned by Vinod Chachra • These companies not under the control of external financial interests
Revenue sources • License fees for new ILS contracts • Maintenance support • 15% purchase cost annually with inflation adjustments • Non-ILS software • Library Services
Diverse Business Activities - • Many ways to expand business in ways that leverage library automation expertise: • Non-ILS software: link resolvers, federated search, ERM, portal/alternative Web interfaces • Retrospective conversion services • RFID or Automated materials handling • Network Consulting Services • Content products • Imaging services
Libraries Demand choice • Current market narrowing options • Consolidation working toward monopoly? • Many smaller companies currently prosper in the library automation industry • Room for niche players • Domination by a large monopoly unlikely to be accepted by library community • Monopoly would be subverted by Open Source or other cooperative movement • Many countries and regions continue to be served by local companies
ILS Defections • Horizon: 196 • Unicorn: 187 • Millennium: 25 • Virtua: 14 • Aleph 500: 5
Business Development Strategy • Essential to understand the strategic business plans of the company • Long term growth? • Short term profits? • Growth through M&A • Organic growth by attracting new customer libraries • Positioning for sale? • Get past press releases and spin and look closely at the corporate behavior.
ALEPH 500 • ILS Developed by Ex Libris Group • Specialized system for large academic libraries, national libraries, and consortia • Adopted by libraries throughout the world • Israel, Europe, United Kingdom, United States, Asia, Latin America • Long-term prospects: eventual transition to URM • $$$$
Millennium • ILS developed by Innovative Interfaces • Generalized system for many library types: Academic, Public, Law, Medical • Highly regarded for its technical services sophistication • Geographic Distribution: • United States, Canada, Asia, United Kingdom, Europe, Lain America • Long term prospects: commitment to continued product evolution • $$$$
Voyager • ILS Developed by Endeavor Information Systems, acquired by Elsevier and later Ex Libris Group • Specialized system for Academic Libraries, National libraries • Geographic Distribution: • United States, Australia, Europe, UK • Long term prospects: • better development under Ex Libris than Elsevier • Eventual transition to URM • Minimal new sales
Unicorn / Symphony • ILS developed by Sirsi Corporation, now SirsiDynix • Generalized system for Public Libraries, Academic, Government • Geographic Distribution: • United States, Canada, Australia, United Kingdom, Europe, Latin America • Long term prospects: continued gradual evolution • Significant defection rate • New sales declining.
Horizon • ILS Developed by Dynix Corporation, acquired by SirsiDynix • Generalized system for Academic Libraries, Public Libraries, Special • Geographic distribution: • United States, Canada, Australia, United Kingdom, Europe • Long term prospects: None. Only maintenance development continues • Defection rate high, most libraries will leave this system within 2-5 years
Virtua • ILS Developed by VTLS • Generalized system for Academic Libraries, Public, National, other special libraries • Geographic distribution: • Europe, Asia, Australia, United States • Defection rate high. (NYU, Oxford) • Recent project for ILS to Queens Public Library
Beyond the ILS Other essential library automation products
Link Resolvers • SFX from Ex Libris Group • 360 Link from Serials Solutions
Federated Search • 360 Search from Serials Solution • WebFeat (acquired by Serials Solution) • MetaLib from Ex Libris Group
Electronic Resource Management • Verde from Ex Libris Group • 360 Resource Manager from Serials Solutions • Electronic Resource Management from Innovative Interfaces
Innovative Interfaces • Privately owned by one of this founders • No involvement with VC or Private equity • No recent involvement in M&A • Acquired SLS in 1997 • Evolutionary Product strategy • Innopac -> Millennium beginning in 1995 • Millennium as core technology • Encore, RightResults, ResearchPro
Ex Libris • Global provider of software to Academic Libraries • Largest in the academic market • Owned by Francisco Partners • Acquired Endeavor in Nov 2006 • Strong focus on non-ILS products: • SFX – MetaLib – Verde – DigiTool – Primo • Continues to support and develop ALEPH and Voyager
SirsiDynix • Highly consolidated company • Sirsi Corp, Dynix, DRA, MultiLIS, INLEX/300, Docutec, OCLC Local Systems, DataPhase, Electric Memory, NOTIS Systems • Largest in the industry • Owned by Vista Equity Partners • Previously supported by VC: Seaport Capital, Hicks Muse) • Consolidated company working toward consolidating and integrating products and business units. • Recent announcement for single Unicorn-based ILS
Civica • UK Company; library automation unit based in Australia • Recently purchased by 3i private equity firm • Large company with software products across several sectors, specializing in systems for public governmental authorities • Spydus library automation system one of many business units • Originated in Australia, deployed in many other geographic regions
OCLC in the ILS arena? • Increasingly overlapped with library automation activities • WorldCat Local recently announced • Penetrating deeper into local libraries • Library-owned cooperative on a buying binge of automation companies: • Openly Informatics • Fretwell-Downing Informatics • Sisis Informationssysteme • Infovision (Amlib) • PICA (now 100%) • DiMeMa (CONTENTdm) • ILS companies concerned about competing with a non-profit with enormous resources and the ability to shift costs.
Cambridge Information Group • Increasingly involved in library automation arena • ProQuest: • Serials Solutions • WebFeat • AquaBrowser (Academic, North America) • R.R. Bowker • AquaBrowser (worldwide) • Syndetic Solutions
Major US Companies not present in Latin America • Follett Software Company • K-12 School library software • Destiny ILS • The Library Corporation • Public Libraries • Library.Solution / Carl.Solution • Polaris Library Systems • Public Companies • Polaris ILS • Auto-Graphics • Public Libraries • AGent
International Library Vendors Advantages and Issues
Stability • Some international vendors may have better means to survive compared to local country businesses • In many regions the global companies have stepped in as local companies decline • Often local companies lack resources to re-develop through technology cycles • Still risky. Mergers and acquisitions can make a big impact
Product sophistication • International companies have large capacity for research and development • Current products offer rich functionality • Support for Unicode and language localization • Ability to automate very complex library organizations
Concerns • Ability to provide in-country support • Software optimized for automation needs of a given region? • Cost. How does the international market price compare to that of local options and open source, and subsidized alternatives? • Long-term continuity of products? • As opportunities decline in the US and Europe, many seek developing world as an emerging market for products