Competing Visions for the Future of Libraries: OCLC and SkyRiver

1. Marshall Breeding Independent Consult, Author, Founder and Publisher, Library Technology Guides http://www.librarytechnology.org/ http://twitter.com/mbreeding Competing Visions for the future of Libraries OCLC and SkyRiver July 23, 2012 American Association of Law Libraries 2012

2. Caveats • Supportive of both organizations • No bias toward preferred outcome • Technology and Business perspective – not legal

3. 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

4. General Technology Trends

5. Discovery • Tools to help library users access library collections • Online Catalog • Next-gen Library Catalog • Discovery Interfaces • Product development trends

6. ILS Data Online Catalog Search: Scope of Search • Books, Journals, and Media at the Title Level • Not in scope: • Articles • Book Chapters • Digital objects • Web site content • Etc. Search Results

7. 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

8. Discovery Interface search model ILS Data Digital Collections Search: Local Index ProQuest Search Results EBSCOhost MetaSearch Engine … MLA Bibliography ABC-CLIO Real-time query and responses

9. 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)

10. Web-scale Index-based Discovery ILS Data (2009- present) Digital Collections Search: Web Site Content Institutional Repositories Aggregated Content packages Search Results Consolidated Index … E-Journals Reference Sources Pre-built harvesting and indexing

11. Web-scale Search Problem ILS Data Digital Collections Search: Web Site Content Institutional Repositories Consolidated Index Aggregated Content packages Search Results … E-Journals Pre-built harvesting and indexing ??? Non Participating Content Sources Problem in how to deal with resources not provided to ingest into consolidated index

12. 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

13. Library Management • Tools for library personnel to manage collections and automate operations

14. Policies $$$ Funds BIB Vendor Holding / Items CircTransact User Integrated (for print) Library System Public Interfaces: Staff Interfaces: Interfaces Circulation Cataloging Acquisitions Serials OnlineCatalog BusinessLogic DataStores

15. Policies LicenseTerms BIB Vendors Holding / Items CircTransact User Vendor E-JournalTitles $$$ Funds LMS / ERM: Fragmented Model Public Interfaces: Staff Interfaces: ` Application Programming Interfaces Circulation Cataloging Acquisitions Serials OnlineCatalog E-resourceProcurement LicenseManagement Protocols: CORE

16. BIB Holding / Items CircTransact User Vendor Policies $$$ Funds Common approach for ERM Public Interfaces: Staff Interfaces: Budget License Terms Application Programming Interfaces Circulation Cataloging Acquisitions Serials OnlineCatalog Titles / Holdings Vendors Access Details

17. 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

18. Libraries need a new model of library automation • Not an Integrated Library System or Library Management System • The ILS/LMSwas 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

19. 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

20. 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

21. New Library Management Model Unified Presentation Layer Search: Self-Check /Automated Return Library Services Platform ` Digital Coll Consolidated index Discovery Service ProQuest API Layer StockManagement EBSCO … Enterprise ResourcePlanning Smart Cad / Payment systems JSTOR LearningManagement AuthenticationService Other Resources

22. Library Services Platforms

23. Development Schedule

24. SkyRiver / Innovative • Provide technology to support individual libraries and consortia • No knowledge base for e-resources • No index-based discovery

25. Mergers and Acquisitions http://www.librarytechnology.org/automationhistory.pl

26. 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

27. 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

28. 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

29. Profit versus non-profit Status • Competitive issue? • Non-profit global organization • Operates a variety of for-profit business units, mostly in Europe

30. Library Automation Industry Trends • Mergers and Acquisitions • Consolidation into a smaller number of larger companies • Increased involvement of Private Equity investments

31. 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

32. 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

33. 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)

34. 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

35. 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

36. WorldCat Growth Since 1998 Source: 2011 OCLC Annual Report

37. 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

38. 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.

39. 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

40. 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

41. 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

42. 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

43. 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

44. Ruling in favor of OCLC • Status quo • Removes pressure for OCLC to accommodate bibliographic records created externally at standard member prices

45. 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