Automation Marketplace 2012

AUTOMATION
MARKETPLACE
2012
As d e v e l o p m e n t efforts near completion on a new
increase the value of their broader offerings to add-cost prodslate of automation products, vendors are beginning to pull out ucts. The pervasive influence of social networking sets expecall the stops to monetize them. A new round of competition . tations for all patron-facing products and presents opportuis heating up to place these new products in libraries, replac- nities for products that directly engage these media, such as
ing their own legacy products and aiming to displace those of SirsiDynix's Social Library, a native Facebook app that enables
other companies. Ex Libris's Alma, OCLC's WorldShare Man- catalog search and patron services.
agement Services, Innovative Interfaces' Sierra, and Serials Solutions' Intota, as well as the open source Kuali OLE project, The State of the industry
are positioned to move toward more dominant market share In 2011, the library automation economy—the total revenues
through a product cycle that will play out over the next de- (including international) of all companies with a significant
cade. These new-generation products will compete with well- presence in the United States and Canada—was $750 milestablished proprietary and open source systems following an lion. This estimate does not necessarily compare directly to
evolutionary path, such as Evergreen, Koha, Polaris ILS, The 2010's $630 million, as this year's estimate includes a higher
Library Corporation's (TLC) Library. Solution, SirsiDynix's proportion of revenues from OCLC, EBSCO, and other
Symphony, and Auto-Graphics' AGent VERSO.
sources previously unidentified. (Using the same formula.
AGENTS
OF CHANGE
Automation
product vendors
are poised for
a major transition
By Marshall Breeding
The transition to new-generation products is a delicate business. Libraries don't respond well to enforced, abrupt transitions. But savvy and well-resourced vendors divide their energies between developing, maintaining, and supporting their
existing products, even as they channel the bulk of their energies to developing and marketing new ones. Failings with legacy products can result in lost credibility, which can take a large
toll on the prospects of new offerings. [Ed. note: A more detailed version of this decade-long overview, with information
about the K-12 and international markets and more in-depth
charts, can be found online at thedigitalshift.com/?p=7053.]
As issues regarding ebook lending roil libraries, publishers,
and service providers such as OverDrive, automation vendors
are working to integrate ebook management and access effectively into their management platforms and discovery services.
Mobile and social networking themes are driving other
threads of development. The ever-increasing use of smartphones, tablets, and other mobile devices are making it necessary for libraries to expand access to their collections and
services to these users. Most vendors now offer some type of
mobile product, and business models include free options that
2010 industry revenues would be estimated at $715 million.)
As OCLC becomes ever more involved as competition in
the library automation industry, we have performed a more
detailed analysis of what proportion of its revenues derive from
products and services comparable to other companies considered in this report. Of OCLC's FYll revenue of $205.6 million, we calculate that $57.7 million falls within that scope.
A broader view of the global library automation industry
that aggregates revenues of all companies offering library automation products and services across the globe totals $1.76 billion, including those involved with radio-frequency identification (RFID), automated handling equipment, and self-check,
or $1.45 billion excluding them. Library automation revenues
limited to the United States total around $450 million.
The overall library economy continues to suffer major cutbacks that may never be fully restored, so library automation
vendors are facing enormous challenges to find growth opportunities. Libraries may only be able to justify investments
for tools that enable them to operate with fewer resources.
Software-as-a-service (SaaS) deployments, for example, result in revenue gains through subscription fees commensurate
with delivering a more complete package of services, includingfor
hosting; libraries see overall savings as they eliminate local
Marshall Breeding ([email protected]) is Director
servers and their associated costs. Stronger companies can inInnovative Technology and Research, Vanderbilt university, Nashville.
crease their slice by taking on competitors with weaker prodHe also runs the Library Technology Guides website
30 I LIBRARY JOURNAL | APRIL 1,2012
ucts, especially tbose in international regions.
Tbe ongoing trend of open source integrated
library systems (ILSs) cannot be discounted.
Open source ILS implementations sbift revenues from one set of companies to anotber, often at lower contract values relative to proprietary software. Scenarios vary, so it's difficult to
determine wbetber tbese implementations result in true savings in total ownersbip costs and
to wbat extent costs sbift back to tbe libraries or
tbeir consortial or regional support offices.
U.S. Academic Library Sales 2011/ILS
(by Number of Contracts)
Infor Library and
Infomation Solutions':5
V-smart
VTLS'sVirtua
1
8\^
Ex Libris Group's Aleph
y'¿.
/
/
^ H
l^/x
^ ^ ^
^""~">x. ^ B^^WJ^^
/ \ ^
1
I
Business cycles
1 ?S
•*; ' ^
\
Ex Libris's Voyager ^^^^ ^ s ^ ^
1
Evergreen •
(Equinox Software)
L
^BBr^
l ^ ^ ^ ^ l
ixuiia
. (Equinox Software)
1
Koha
. (ByWater Solutions)
13Koha
Tbe first sentence oí LJ's 2002 Automation
(PTFS-LibLime Academic)
SIrsiDynix's — — « T
J^
Marketplace remarkably still reflects tbe state of
Symphony
%
J^ ^ ^ ^ \"^~~~~-^ Koha
4
^ ^ ^ ^
\ ^ (PTFS-LibLime)
tbe industry today:
"A smaller group of larger firms dominate
tbe library automation marketplace. Tbey are
\
The Library Corporation's
Polaris's
'
\
Library.Solution
largely international, diversified, and privately
Polaris Integrated
Library System
Innovative Interfaces's 7
owned. Tbe mergers and consolidations tbat
Millennium
marked tbe recent bistory of tbe industry bave
4
16
absorbed tbe weaker products and companies."
Tbe consolidation oftbat era, funded mostly
by venture capital or individual investors, led to
mucb more aggressive cbanges tbat bave played
(by Number of Contracts)
out since.
VTLS's Virtua
1 Auto-Graphics' AGent VERSO
But tbe library automation industry of 2002
1
InforLibrary and Information
1
was also strikingly different from tbat of today.
-14
Solution's V-smart
1
Ex Libris Group's Aleph
Among tbe major companies. Innovative Inter18
- ^
faces stood as tbe largest company in terms of
2
SirsiDynix's Symphony-...^ . ^ ^ ^ H ^ H
revenue, personnel, and customers. In tbe big
. ^^„--Biblionix's Apollo
news oftbat year, Sirsi bad acquired DRA. Epixtecb, soon to be renamed Dynix, bad previously
SirsiDynix's Horizon
JBHH||H|
1
The Library Corporation's
acquired NOTIS and earlier bad taken over a set
1
( • jjl^
i
CARLX
of automation products cast off by OCLC. EnPolaris's Polaris ILS
\
jd^B
K
O
deavor Information Systems was operating under
Evergreen (Equinox Software)
46
\
^
^
tbe ownersbip of publisbing giant Else vier SciInnovative Interfaces'
7 ^ ^ B •1
ence. Gaylord Information Systems operated as a
^\
13
Millennium
^^ Library
Koha \ ^ Infovision's Evolve
subsidiary of Gaylord Bros. Geac was beginning
(ByWater
^
Corporation's
to see its Nortb American market sbare erode.
\ Koha 15
Library.Solution
Solutions)
2 O (Equinox Software)
Largely fueled by private equity, tbe last de29
Koha
£.
(PTFS-LibLime)
cade bas seen a series of business transactions
tbat bave concentrated mucb of tbe industry's
17
economy into tbe bands of a small number of Data represents total contracts for ILSs, not total number of libraries. U.S. companies only.
companies. Golden Gate Capital acquired Geac SOURCE: U AUTOMATION MARKETPLACE SURVEY 2012
and folded it into Infor, wbere its library division
continues witb a focus on European libraries. Vista Equity Part- resources to replace tbem. Nonprofit OCLC made a series of
ners assembled SirsiDynix from tbe already consolidated Sirsi business acquisitions, including PICA, Fretwell-Downing,
and Dynix, executing a strategy of business integration tbat bas Sisis Informationssysteme, InfoVision Tecbnologies, BOND
resulted in a streamlined company tbat manages a very large GmbH, Openly Informatics, Useful Utilities (EZ Proxy), and
customer base witb a lean workforce. Francisco Partners bougbt DiMeMa (CONTENTdm). Along witb tbese large consoliEx Libris and Endeavor in separate transactions, forming a new dated entities, many mid-sized and small companies tbrive.
company (Ex Libris Group) witb a researcb and development
Tbe business cycles tbat bave sbaped tbe industry to tbis
focus tbat bas driven tbe creation of new products tbat bave at- point will likely continue. At some point, current private eqtracted a growing customer base. Leeds Equity acquired own- uity owners will casb out tbeir investments. Tbese new transersbip in 2009, largely continuing existing business strategies.
actions migbt simply involve new ownersbip, but tbe possibilFamily owned Follett Software Company acquired com- ity of additional consolidation cannot be ruled out.
petitor Sagebrusb, including its acquired ILS products Winnebago Spectrum, InfoCentre, and Atbena. Once in wide- Large companies dominate
spread use, eacb of tbese bas been dying a slow deatb, starved Ex Libris now ranks as tbe largest company in terms of perfrom development and used by libraries bard-pressed to find sonnel, 512 overall, witb 170 allocated to development, nearly
31
VJ
U.S. Public Library Sales 2011/ILS
y
63
WWW.LIBRARYJ0URNAL.COM REVIEWS. NEWS. AND MORE
"
"'••
• - '
^j^H
APRIL 1,2012 I LIBRARY JOURNAL | 31
AUTOMATION
MARKETPLACE 2012
THREE-YEAR SALES TRENDS AND SUMMARY*
lEWC;usTonA ERS
COMPANY
SYSTEM NAME
2010
2011
TOTAL SALES
200»
2010
2011
•'im.'
2011
mm
' 12
LIBRARY SERVICES PLATFORMS
Ex Libris
Aima
Innovative Interfaces, Inc.
Sierra
OCLC
V\/orldShare Management Service
0
1
INTEGRATED LIBRARY SYSTEMS FOR PUBLIC, ACADEMIC AND CONSOttTIA
SORTIlA
Auto-Graphics
AGent VERSO
16
13
Biblionix
Apollo
55
87
ByWater Solutions
Koha
44
7
Equinox Software
Evergreen
15 •
15
Equinox Software
Ex Libris
Koha
Voyager
Ex Libris
Aieph
Infor
Vubis Smart
Infor
V-smart
InfoVision Technology
Evolve
Innovative Interfaces
Millennium
The Library Corporation
Library Solution
The Library Corporation
Carl.X/Carl.Solution
OCLC
AmIib LMS
Polaris Library Systems
Polaris ILS
RTFS Liblime
PTFSLiblime
LibLime Academic Koha
Koha
SirsiOynix
Symphony
SirsiOynix
Horizon
VTLS Inc.
Virtua
. 1 .
38
6
6
34
30
0^
,s •
\ ?.;..
1
30
1
12
5
37
43
0
0
23
21
' '£8'
S5
7.18
•2
4-7
12
'
. '5.33
18 •
44
126
20
22
• 45
. 30
•
0 •
. 2 .•
12
13
87
44
15
5
39
1
21
73
39
43
3
12
23
• .12
9
32
48
0
0
53
7
27 :
41
44
47
• 0
l'R ,
12
79
48
20
6
1
18
0
8
24
206
184
16
79
54
21
6
1
25
0
30
19
32
48
2
0
53
7
27
122
2 ;
13
ê4746
271
445
1164
4
1
100
20
•
'•
4 5
:•• 1 6 ,
;
NON-U.S.
TOTAL
SALES INSTALLED
12
53
4
55
0
38
2
0
1
1
1
463
272
446
450
17
1255
2316
213
141
100
1425
773
20
24
197
0
12
3
4
1 V ..Si:-
2
;.J ' .B5':'
11
71
1
12
.
"
.
.
*
.
.
,
•
:
; . • . ) : , ; ; .
418
123 .
503
2377
1311
1798
"Numbers represented here are as reported by the vendors; blank spaces indicate that no data was provided, or companies gave only aggregate figures. Special libraries not included.
SOURCE: U AUTOMATION MARKETPLACE SURVEY 2012
twice that of any competitor. Based on revenue estimates, SirsiDynix, Ex Libris, and Innovative Interfaces, respectively,
rank largest in the industry.
In terms of ILS installations supported in the academic
and public library sector, SirsiDynix leads with 3,688 (Symphony: 2,377, Horizon: 1,311), followed by Ex Libris with
3,571 (Aleph: 2,316, Voyager: 1,255), then Innovative Interfaces (1,425).
As a whole, OCLC looms larger than any of the other firms
in the library automation industry by personnel employed, libraries served, and revenues. But when considering only the
specific areas of involvement with the scope of the library automation industry, OCLC ranks about fifth.
The library automation industry includes a number of midsized companies with very long histories. Some of these have
remained relatively fiat, or have even downsized over time, but
continue to operate profitably. Such companies include AutoGraphics, with its 45 personnel in 2002, down to 34 today;
Book Systems (88 to 60); and EOS International (69 to 52).
Others have seen growth, such as TLC (173 in 2002, up to 199
in 2011), VTLS (100 to 110), and Keystone Systems (12 to 17).
Business transitions
Relatively few mergers or acquisitions transpired in 2011. UKbased Talis, a company that had divided its business activities
between traditional library automation products and services
and semantic web technologies, split itself along those lines;
Ample opportunity
Capita, a large outsourcing services firm acquired the library
While large companies dominate, many smaller enterprises automation side, including its Alto library management system
thrive by exploiting niches that larger firms may not consider and related products. Talis will continue to exploit its semantic
worthwhile and cultivating new library customers by provid- web services but largely outside the library arena.
ing high-quality personalized services.
SydneyPLUS, a company involved primarily with special
Start-ups are not common in the library automation indus- libraries, acquired the brand and library automation assets of
try, though some recently formed companies show great po- competitor Inmagic, but Inmagic will continue to operate as
tential for growth. ByWater Solutions entered the scene most an independent wholly owned subsidiary.
recently, in April 2009, and has seen dramatic growth in the
OCLC continued its buying spree of European library aunumber of libraries contracting for its services to support the tomation companies with the acquisition of BOND, which
open source Koha ILS. In itsfirstthree years, it garnered seven, supplies the Bibliotheca2000 and Bibliotheca.Net library
44, and 54 support contracts, respectively, serving a total of management system to around 4000 libraries in Germany,
446 libraries. Biblionix began offering its hosted Apollo ILS in Austria, and Switzerland. According to the 2011 OCLC An2006, with active marketing beginning in 2008, with 49, 55, nual Report, this transaction was valued at $5.9 million. This
87, and 79 respective sales in subsequent years, and a current acquisition is but the latest in a series that brings large numcustomer base of 272 libraries. Its focus on automating small bers of libraries operating legacy ILS products under OCLC's
public libraries with a fully hosted web-based ILS has proven aegis. We can speculate that one thread of interest involves
to be a successful strategy.
providing these libraries with an attractive migration path
32 I LIBRARY JOURNAL | APRIL 1.2012
on the WorldShare Platform. OCLC has expanded the number
of data centers supporting the WorldShare Platform to provide
a more global infrastructure, growing from the original two in
the United States, with one in the UK in 2011, with plans for
more in continental Europe, Canada, and Australia in 2012.
By the end of 2011, 38 libraries were in production with
WMS and another 184 had committed to implement. WMS
broke into the realm ofthe large academics with the University of Delaware committing to implement by 2013. In early
2012, OCLC announced the WorldShare License Manager to
offer full functionality for managing electronic resources.
Library services platforms
Ex Libris continues to work toward the completion and reOne of the. major vectors ofthe industry involves the emergence of a new genre of automation products poised to begin lease of Alma, its new library services platform, implementing
a new cycle of migrations. These products differ substantially its principles of unified resource management. Development
from ILSs and cannot be considered as within the same prod- has been under way since 2009 with the engagement of deuct category. We term these new offerings library services plat-velopment partners Boston College; Princeton University, NJ;
forms. Salient characteristics include management of print and Katholieke Universiteit Leuven, Flanders, Belgium; and Purdue
electronic library materials, reliance on global knowledgebases University, West Lafayette, IN. Through 2011, the institutions
instead of localized databases, deployment through multitenant worked with Ex Libris to provide input into the design, testing,
SaaS based on a service-oriented architecture, and the provi- and evaluation of a series of Alma Partner Releases, culminating
sion of a suite of application programming interfaces (APIs) with afinalversion delivered toward the end ofthe year. Genthat enable greater interoperability and extensibility. There are eral release of Alma is expected in early to mid-2012. Beyond
significant differences within the product category, however, the initial set of development partners. Ex Libris has signed 24
with quite distinct conceptual, functional, and technical char- contracts for 55 institutions to become early adopters of Alma.
acteristics. Implementation of a library services platform can
In April 2011, Innovative Interfaces announced that it would
potentially displace multiple existing products, including ILSs, develop a new generation automation platform called the Sielectronic resource management tools, OpenURL link resolv- erra Services Platform. Taking forward the functionality of its
ers, and digital asset management systems.
Millennium ILS, Sierra embraces a new technical architecture,
OCLC wasfirstout ofthe blocks in this genre. For 2010, we a more open design exposing a service layer of APIs for mulreported five production deployments of what was then called tiple functions, and a new suite of applications. Unlike MillenWeb-scale Management Services. The product has since been nium, which offers separate modules for each functional area.
rebranded as WorldShare Management Services (WMS), and Sierra follows a more unified approach, delivering all staff tasks
OCLC has continued to develop the underlying infrastructure through a single client. Sierra will make use of open source
and articulate its vision. The WorldShare Platform provides components such as PostgreSQL, for data storage and transacthe general infrastructure that underlies WMS, and it can also tions, and Apache Lucene, for search and retrieval. Millennium
serve as the basis for applications created by OCLC members or had gained a reputation as a relatively closed system—a vulnerthird parties. OCLC intends to cultivate an active community ability at a time when many libraries strategically want more acof library programmers engaged with creating services based cess to data and functionality. Innovative Interfaces began initial testing of Sierra late in 2011 and plans to
deliver an initial production version this year.
PERSONNEL ANALYSIS*
In June 2011, Serials Solutions announced
2011
CHANGE 2011,^
that it was jumping into the library automaH
SINCE
LIBNS.'
COMPANY
DEVELOP- SUPPORT SALES AOMIN OTHER. B S J I M 2010 ON STAFF
tion arena with a web-scale management soluMENT
tion, since named Intota. It would extend the
Auto.-Graphics, Inc.
7
8
8
3
6
8 H H1 2
approach that Serials Solutions has taken with
ByWater Solutions
3
12
3
3
6
1 mi i l ^
the management of electronic resources to
Cívica
19
14
371
6
21
H 10
4
Cuadra
7
2
3
4
0
print materials, including reliance on a knowl2
H3
EOS International
11
14
20
4 .
2
3
Km p
edgebase collectively shared by libraries that
U
Equinox Software
6
5
2
3
5 WE m -1
use the product, management of individual liEx Libris
54
170
231
44
13 SEE m 8
brary
holdings through profiles, and deployInfor Library Solutions
16
36
13
6
I
0
ment through multitenant SaaS. Serials SoInfoVision Technology
5
3
3
0 '
M
3
..0 ^
Innovative Interfaces, Inc.
83 '
158
24
43
lutions will release Intota in multiple phases,
3 wm • 4 "=_ÏÏ8=3- ---'
Keystone Systems, Inc.
5
6
3
2
1 HI 1 ~o
beginning in late 2012, with a more complete
. 25" j^
The Library Corporation
39
91
13
28
28 H f l 1
0
product available by the end of 2013.
into OCLC's WorldShare Management Services.
In the RFID, self-service, and automated handling arena, a
major consolidation took place through the acquisition of Switzerland-based Bibliotheca RFID Systems, UK-based Intellident, and Integrated Technology Group in the LJnited States
by the private equity firm One Equity Partners to form a ne'w
global firm. In February 2012, Bibliotheca Group also acquired
the Swiss company Trion AG, which designs and manufactures
automated materials handling equipment for libraries.
m
•S
ÓCLC
Polaris Library Systems
PTFS
27
5
42
15
2
16
8
8
80
84
50
46
4
57
SirsiDynix Corporation
166
51
23
56
VTlS'lnc.
24
48
12
8
Serial!, Solutions
18
1
11
si
8
1
0
SIg S
t u nm
29
5
Hî
MUÍ "¡M
14
r?9.L
6o;7 '
Yf
•Numbers represented here are as reported by the vendors; blank spaces indicate that no data was provided.
SOURCE; U AUTOMATION MARKETPLACE SURVEY 2012
WWW.LIBRARYJ0URNAL.COM REVIEWS. NEWS, AND MORE
Sales leaders
There was a 2011 uptick in contracts for major library automation products. Innovative
Interfaces led the industry with an impressive 206 contracts signed as early adopters of
Sierra, representing 700 libraries and 1,616
APRIL 1,2012 I UBliJ\RYJOURNAL | 33
AUTOMATION
MARKETPLACE 2012
facilities. The company inked an adSALES OF PRODUCTS BY CATEGORY*
ditional 32 contracts for Millennium,
totaling 238 contracts overall in 2011,
NEW NAME
EXISTING
TOTAL
COMPANY
SYSTEM NAME
INSTALLED
CUSTOMERS CUSTOMERS CONTRACTS
an unprecedented number for at least
LIBRARY SERVICES PLATFORMS
the last decade in the public and acaEx Libris Group
Alma
2
24
24
55
demic sectors.
Innovative Interfaces
Sierra Services Platform
1
0
205
206
OCLC
WorldShare Management Services
. 184.
38
In this saturated market, where
few libraries are automating for the
DISCOVERY PRODUCTS AND SERVICES
first time, winning contracts with
Ex Libris
.
Primo
• 1 4 •
90
914
Ill .
new clients is essential to grow a
Innovative Interfaces
Encore
326
72
company's customer base. In 2011,
Mandarin Library
M3 Web OPAC
42
•
326
Automation
Polaris led in new-name sales, more
OCLC
WorldCat Local
1578
than doubling its 2010 total with 53
Serials Solutions
Summon
214
21
407
contracts, followed by TLC with 48
Serials Solutions
Aqua8rowser
214
154
250
contracts for Library.Solution (down
SirstDynix
SirsiDynix Enterprise
12
251
100
from 43). Forty-one of the 122 conSirsiDynix
SirsiDynix Social Library
37
0
37
tracts (covering 725 libraries) that
The Library Corporation LS2 Kids
43
88
SirsiDynix signed for Symphony
The Library Corporation LS2 PAC
88
236
were to libraries not previously using
VTLS
1
Chamo
7
7
51
its products. And OCLC reported
VTLS
ChaVís
3
184 contracts for WMS in 2011.
1
VTLS
Visualizer
1
3
In the open source arena both ByVTLS
Vitation
2
Water Solutions and Equinox SoftFEDERATED SEARCH
ware saw substantial gains. LibLimeAuto-Graphics
AGent Portal
2
2
2
1307
PTFS saw a decline in new contracts
Auto-Graphics
AGent Search
2
2
2
1307
from 40 in 2010 to 22 in 2011.
Ex Libris Group
MetaLib
15
28
43
1746
Not surprisingly, companies offerInnovative
Research Pro
2
314
Interfaces, Inc.
ing new library sei'vices platforms saw
Serials Solutions
360 Search
58
330
declines in their traditional ILS prodSerials Solutions
WebFeat
0
40
ucts: Ex Libris reported 25 Aleph
contracts in 2011, down from 39 in
MOBILE PRODUCTS
2010; Innovative Interfaces made 39
The Library Corporation LS2 Mobile
27
33
sales of Millennium in 2010 but only
SirsiDynix
BookMyne
530
32 in 2011, tbough all were to newname customers.
As the library automation industry becomes increasingly ing Dynix's (now SirsiDynix's) Horizon, Endeavor's (now Ex
globalized, many companies based in the United States have Libris's) Voyager, VTLS's Virtua, and the Polaris ILS. Sirsi's
significant international involvement. Innovative Interfaces Unicorn ILS evolved from the host-terminal era through
gets 30 percent of its revenue from outside the United States.. the introduction of new clients, initially InfoVIEW and later
Just under half of the contracts SirsiDynix signed in 2011 WorkFlows. Innovative Interfaces took a similar evolutionary
were to international libraries, and OCLC is active in many route by developing a new set of Millennium modules to opregions of the globe, with 25 percent of revenues earned out- erate with the same server software as INNOPAC.
Now, prevailing trends in technology favor products that
side the United States. Ex Libris, based in Israel, earns about
one-third of its revenue in the United States. Civica currently embrace service-oriented architectures and web-based inhas only a handful of sites in the United States or Canada, but terfaces, designed to be deployed though cloud technoloit is a dominant player in tbe UK, Australia, and Asia with its gies, though some concerns persist regarding security and
Spydus LMS and otber products. Infor Library and Informa- reliability.
That said, the trend away from local library hosting isn't
tion Solutions, a small division within a very large IT services
firm, stands as a significant player in the European library au- new. In 2002, we observed that more companies offer an ASP
tomation market, with a small presence in the United States (Application Service Provider) model.
That model of vendor hosting of client/server products
and Canada.
persists today, often labeled as managed services or SaaS. In
its infancy a decade ago, this model has recently become a
Technology q^cles
A decade ago, the library automation industry was in the heavily promoted mainstream option. More than 750 librarthroes of a transition from ILSs based on host-terminal hard- ies use SirsiDynix's hosting services for Symphony or Horiware and text-based interfaces to new products based on then- zon. As local hardware fails or reaches the end of its useful life,
in-vogue client/server architecture. Mainframes had become many libraries opt to shift to a vendor-hosted arrangement.
prohibitively expensive to operate. Powerful personal com- Apart from hardware issues, some libraries move to bosting
puters witb graphical interfaces and faster networks ushered in services to free their technical support staff to attend to other
this new era in computing. A wave of development beginning priorities.
in the early to late 1990s launched client/server ILSs, includThe newly developed library services platforms follow
34 I LIBRARY JOURNAL | APRIL 1,2012
not be available in the software. In
the United States and Canada, companies offering services include EquiNEW NAME
EXISTING
TOTAL
COMPANY
SYSTEM NAME
INSTALLED
CUSTOMERS CUSTOMERS CONTRACTS
nox Software, the dominant firm
DIGITAL LIBRARY MANAGEMENT SYSTEM
involved with Evergreen, though it
AutorGraphics
AGent Digital Collections
2
4
. 1
7
193
also supports a handful of libraries usEx Libris Group
DigiTooi
1
5
" 15
Ex Libris Group
Ex Libris Rosetta
0
ing Koha; ByWater Solutions, which
CONTENTdm
924
OCLC
supports Koha and is aligned with the
SirsiOynix Portfolio
44
55
SirsiDynix
8
global koha-community.org develop1
VTLS
VITAL Media
ers; and PTFS-LibLime, which offers
services
for two ILS products, LibELECTRONIC RESOURCE MANAGEMENT SUPPORT
Ex Libris Group
Verde
2.
7
8
229
Lime Koha and LibLiine Academic
332
Innovative Interfaces
Electronic Resource Management
18
Koha. Other organizations involved
Seriáis Solutions
360 Core
76
456
621
in support for Evergreen include the
360 Counter
66
256
Serials Solutions
102
nonprofit LYRASIS member orga444
Serials Solutions
360 MARC Updates
53
310
nization; the PALS organization, as145
273
Serials Solutions
360 Resource Manager
33
sociated with the Minnesota State
167
Serials Solutions
Ulrichs Serials Analysis System
21 '
106
Colleges and Universities system; and
53
809
979
Serials Solutions
Ulrichsweb
HSLC, a nonprofit supporting libraries in Pennsylvania.
INSTITUTIONAL REPOSITORY
1
1
31
VTLS
VITAL
In 2011, more libraries contracted
for open source ILS products than in
OPENURL LINKING APPLICATION
66
2306
Ex Libris Group
SFX
93
the previous year. Equinox signed 21
Serials Solutions
224
. 593
974
360 Linl<
support contracts for Evergreen rep9' . , ;
385
Innovative Interfaces
WebBridge LR
resenting 117 libraries and 415 facilities, compared to 15 contracts in
RESOURCE SHARING SYSTEMS
2703
Auto-Graphics
AGent Resource Sharing
2010, and another six for Koha. ByWater Solutions' 54 contracts repRFID SUPPORT
1
1 , .
18
VTLS
FASTRAC (RFID)
resenting 231 libraries beat the 44 it
signed in 2010. PTFS signed 22 deals
ARCHIVES MANAGEMENT
j'
.
f,
VTLS
'
• Virtua for Archives
' :• • , I ''
for LibLime Koha representing 76
libraries, a decline from the 44 re•Numbers represented here are as reported by the vendors; blank spaces indicate that no data vïas supplied,
or companies gave only aggregate figures. U.S. companies only.
ported in 2010; PTFS also reported
SOURCE: U AUTOMATION MARKETPLACE SURVEY 2012
an additional seven contracts fbr LibLime Academic Koha.
more modern notions of cloud computing. Many offerings
The efforts of the Kuali OLE project, meanwhile, will not
will be offered in this model exclusively, including World- produce an open source ILS but a product consistent with the
Sbare Management Services, Alma, and Intota. Others will characteristics of the library services platform. The Kuali OLE
have options for local installations, but we can expect that partners are led by Indiana University, Bloomington, and incloud deployments will dominate over time.
clude the University of Maryland, College Park; Lehigh University, Bethlehem, PA; University of Chicago; University of
The product q^cle
Pennsylvania, Philadelphia; University of Michigan, Ann ArOver the next decade, we can expect at least the same level of bor; Duke University, Durham, NC; North Carolina State
product turnover as in the previous one. The vast majority of University, Raleigh; and a consortium of university libraries
automation systems installed today follow the client/server ap- in Florida. Partial funding is provided through the Andrew W.
proach. Just as the last decade saw a complete turnover from Mellon Foundation; the Kuali Foundation manages its govhost-terminal products to ones based on client/server architec- ernance. The project anticipates completion of the initial vertures, we can anticipate a similar pattern. We can also expect sion of the Kuali OLE software in December 2012, with imsimilar themes of "capturing the migrating customer" or "the plementation in partner institutions beginning in 2013. The
competition heats up" (titles of the Automation Marketplace Kuali OLE project has also engaged a commercial firm, Troy,
in 2002 and 2003, respectively) in the next few years, as a new Ml-headquartered HTC Global Services, as a development
wave of migrations from legacy ILS products to new library partner. We can anticipate commercial firms gathering around
services platforms gains full steam.
Kuali OLE as they have open source ILS products.
SALES OF PRODUCTS BY CATEGORY'' (CONTD.)
Open source opportunities
Open APIs
Many libraries continue to opt for open source ILSs rather
than proprietary products. Evergreen and Koha.ILS products
have become mainstream. Both offer features compairable to
proprietary products and have commercial companies that offer migration, hosting, and support services. Libraries can also
sponsor development for new features they require that may
Libraries increasingly expect to be able to access the data and
functionality of their key systems through APIs, and that expectation applies to both proprietary and open source software. The
availability of an open and robust set of APIs is a key characteristic of the new genre of library services platforms, and many traditional ILS products also offer this capability. SirsiDynix Sym-
WWW.LIBRARYJ0URNAL.COM REVIEWS. NEWS, AND MORE
APRIL 1,2012 I LIBRARY JOURNAL | 35
AUTOMATION
MARKETPLACE 2012
pbony, for example, bas included a proprietary set of APIs since
1995 (and in 2009 released its Web Services package delivering a
more substantial subset of its APIs for development).
In 2011, Polaris Library Systems initiated a program called
tbe Polaris Developer Network, in wbicb it grants libraries
using tbe Polaris ILS open access to its APIs, and provides a
development environment and tools to belp customers create and sbare applications. Individuals or organizations tbat
aren't Polaris customers can purcbase membersbip, including companies wanting to integrate tbeir products or services
witb Polaris.
Ex Libris bas a long-standing practice of creating APIs for
its products and making tbem available to its customer libraries, and tbat will persist witb Alma. Ex Libris reports ongoing
interest in its Open Platform Program, originally launcbed in
2008, wbicb provides tbe EL Commons CodeSbare for library
programmers to deposit and sbare tbe applications, scripts, or
otber code tbat tbey create using its products' APIs.
A fundamental precept of OCLC's approacb witb its WorldSbare Platform involves providing access to its APIs and cultivating a community of library developers. Just as OCLC
makes use of tbe WorldSbare Platforni APIs to develop largescale applications, libraries can build tbeir own applications.
OCLC provides an App Gallery wbere completed applications
can be certified by OCLC and made available for use by otber
libraries.
TLC successfully promoted AquaBrowser as a next-generation
catalog for its customers, and many of tbose installations remain. Witb tbe acquisition oftbat tecbnology by Bowker (and
now part of tbè Serials Solutions portfolio), tbe company developed its own LS2 PAC and bas transitioned some of tbose
customers from AquaBrowser to LS2 PAC. Witb LS2 PAC
available to tbese libraries free of cbarge, libraries operating
AquaBrowser or TLC's legacy online catalog module are more
likely to make tbe sbift.
SirsiDynix offers Enterprise as its new-generation discovery layer and Portfolio for access to digital collections using tbe
same platform. In 2011, SirsiDynix delivered an updated version of botb products and reported 100 libraries contracting for
Enterprise and 44 for Portfolio.
Taking a social media approacb to discovery for public libraries, BiblioCommons continues to attract interest. Tbougb
tbe company did not provide sales statistics, BiblioCommons
boasted many new libraries in 2011, including tbe New York
Public Library; Vancouver Public Library, BC; and tbe Obiobased CLEVNET consortium.
Expectations are rising for libraries to deliver effective discovery of library materials, along witb interfaces tbat stimulate
engagement. Combined witb tbe large number of libraries tbat
remain on older-generation online catalogs, tbis means tbat
discovery products sbould continue to represent a significant
portion of tbe industry.
Intense discovery competition
Delivering through mobile devices
Especially among academic libraries, tbe need for discovery
tools broader tban an ILS's online catalog is well accepted. Libraries witb significant investments in electronic content—
wbicb includes almost any academic library—are likely to be
in tbe market for a discovery service if tbey do not already bave
one. Products witb large indexes of scbolarly content vigorously compete in tbis arena, including Serials Solutions' Summon, Ex Libris's Primo Central, OCLC's WorldCat Local, and
EBSCO Discovery Service, as well as Innovative Interfaces'
Encore Synergy, wbicb uses web services to integrate articles
into searcb results. Points of differentiation include tbe quantity of materials indexed, wbetber tbe materials are indexed by
citation or full text, and tbe effectiveness in producing relevant
results.
Tbe providers of discovery services based on consolidated
indexes compete intensely to gain access to scbolarly content
aiming toward tbe most comprebensive representation possible. NISO launcbed tbe Open Discovery Initiative in 2011
to describe best practices or standards tbat apply to index-based
discovery services witb stakebolders from libraries, content
providers, and producers of discovery services.
Public libraries seek discovery products tbat deliver a ricber
end user experience and tbat stimulate engagement witb tbe
library's programs and services. Many companies tbat offer
ILS products to public libraries offer enbanced online catalog
products tbat embody cbaracteristics of discovery products,
boping to stem tbe tide of libraries seeking discovery products
elsewbere.
In a remarkable move, TLC launcbed "Solutions Tbat Deliver MORE," a program tbat provides all its current Library.
Solution customers access witbout cost to its new patron and
staff interface products, including LS2 PAC, LS2 Kids PAC,
LS2 Mobile, and tbe LS2 Staff Web. Between 2004 and 2008,
Interest in mobile options continues to intensify. Almost all
providers of patron-facing library services offer mobile versions, but business models for access vary. SirsiDynix, for
example, put out its basic BookMyne mobile app as a free
download but also sells BookMyne+ to libraries if tbey want
a customized mobile catalog. TLC, as noted, recently offered
its LS2 Mobile to current customers witbout cost. Innovative
Interfaces now provides Encore Mobile as a no-cost option for
existing customers of its Encore and AirPAC. Auto-Grapbics
released iLib2Go in 2011, its initial mobile offering, as a free
iPbone download available to all AGent VERSO sites.
36 I LIBRARY JOURNAL | APRIL 1,2012
Looking forward
Given tbe factors in play, we can anticipate moderate growtb
in tbe overall library automation economy in tbe next few
years, witb revenue enbancements associated witb increased
proportions of SaaS outweigbing tbe deflationary impact of
open source adoptions. Large companies witb international
reacb, compelling products, and many customers poised to
sbift from local deployments to SaaS stand to make gains at a
faster pace.
Tbe lackluster sales of tbe last few years sbould begin to tick
upward as libraries make commitments to new library services
platforms. Tbe turnover from legacy automation products will
cburn in tbe United States and even more intensely internationally. Expect sales of discovery products to climb; tbey can
now be considered essential products, especially for academic
libraries. As tecb products become more compelling and reacb
sufficient levels of maturity, libraries tbat bave deferred upgrading tbeir infrastructure will increasingly move forward.
Despite depressed budgets, libraries will continue to invest in
tecbnology products to maintain tbeir position witbin tbeir
communities or parent institutions
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