By Andrew K. PaceAmerican Libraries Columnist
By Andrew K. Pace
American Libraries Columnist
Head of information technology,
North Carolina State University Libraries,
Raleigh
andrew_pace@ncsu.edu
May 2007
These days, I can hardly put a column in the can without three or four changes in the vendor landscape occurring before it hits the pages of American Libraries or the mailboxes of readers—or my Hectic Pace blog, for that matter. This has been quite a first quarter for the library automation business, with some changes that are sure to cause a ripple effect that could last for the next few years.
Any of these kinds of changes can trigger the FUD syndrome in some people—fear, uncertainty, and doubt. FUD is going around the library community these days, considering all the mergers, partnerships, and acquisitions of the last 2–3 years.
Last month, I wrote that Patrick Sommers had left his post as CEO of SirsiDynix just a couple of months after the firm’s acquisition by Vista Equity Partners, (AL, Apr., p. 28). Several top brass followed Sommers out the door shortly thereafter, including Don McCall (COO), Dean McCausland (CFO), and Angus Carroll (CMO). As of this writing, Vista principal Martin Taylor (formerly of Microsoft) is acting CEO of the largest library automation vendor.
As if that were not exciting enough, SirsiDynix has announced that it would be ceasing development of both its primary library systems, Unicorn and Horizon. A new system—code-named “Rome” and based on the Unicorn architecture—will represent a single platform poised to tap the best of the development of both systems. While the older platforms have not been declared “end-of-life,” there will be no further improvements to them; development on the next-generation system announced by Dynix (then Epixtech) back in 2004, Horizon 8.0 or Corinthian, has also been halted.
This announcement created no small amount of disappointment from Horizon 7.x customers, who had been awaiting the arrival of a stable upgrade for some time. No doubt the nearly 10 beta test sites for Horizon 8.0 feel the strong tug of the rug out from under their virtual feet.
From a business standpoint, however, the decision does make some sense. It’s costly to sell, develop, and support two different systems. With similar functionality and continued improvements in both product lines, knowing which system a vendor is selling (or which system a customer should be buying) can be confusing. The move will create tremendous cost savings, not only from an efficiency standpoint, but also from any resulting reduction in force.
Francisco Partners is another private equity firm new on the scene. After acquiring Ex Libris in fall 2006, it also acquired Endeavor Information Systems late last year (AL, Jan., p. 30). The cessation of development on several Endeavor product lines was quickly announced, but the merged company, operating under the Ex Libris name, still supports two primary integrated systems—Voyager and Aleph—and has not announced plans to cease development of either.
The potential benefit of these types of changes to customers is a singular focus on development of one suite of products, rather than two, and a return to product management as a driving force of innovation, rather than more fickle and whimsical product offerings or features required by various sales contracts.
Primary competitors Innovative, TLC, and Polaris are likely rubbing their hands. Open-source initiatives like Koha and Evergreen—supported by service providers such as LibLime and Equinox—should be salivating at the chance to garner a few more customers. Even OCLC is probably watching this shift in the market with interest as it continues to grow its service-based and software products. VTLS has gone so far as to offer a free system to libraries feeling stuck with legacy systems (conditions include a three-year service agreement).
Marketplace watchers such as myself like to say that the library industry is just different than other types of industries. Nevertheless, I think these newcomers need to take a careful look at their customers. We are not Fortune 5000 companies that will simply migrate because our vendor tells us to. Many libraries on shoestring budgets are more likely to dig in their heels and resist the pressures to move from one fully functional system to another.
Moreover, open source providers should be asking themselves if they are prepared to make software offerings that adequately match the feature-sets of the most robust legacy systems. Vendors with smaller markets or smaller customers—like Auto-Graphics, VTLS, and EOS International—should be asking themselves if they can ramp up for any of the customers who might find themselves shopping again soon.
EBSCO is helping students hone their debating skills with the release of Points of View Reference Center. The full-text database provides essays on numerous topics that present multiple sides of issues, including affirmative action, stem-cell research, immigration, and foreign policy. The database includes magazine articles, essays, and radio and TV transcripts.
Springer has credited Google Book Search with increased sales of its 29,000 titles available through the program. Pre-1997 titles account for 20% of online sales. 15,000 of the titles, with 5,500 being added each year, are available to libraries by subscription with perpetual access rights.
OCLC has acquired TechAtlas with funding from a Bill and Melinda Gates Foundation Grant. OCLC’s WebJunction will continue developing the software that has been popular with public libraries seeking technology plans that are e-rate compliant.