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Reasons why libraries purchase expensive closed-source software that doesn't work for them:
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1. The tender process in UK HEIs lends itself to the existing vendor marketplace. It's not flexible enough to support homegrown solutions.
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2. The senior managers who did the tendering process didn't have enough technical knowledge to know what they were looking at / for.
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3. The vendor of the closed-source project that doesn't do what they want bought senior managers dinner and drinks at a conference.
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4. "We've always used [X] and it's easy to upgrade to [vendor]'s new product [Y]."
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5. Libraries don't employ staff who can do chunky tech stuff required for implementation projects: they have to rely on vendor support.
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6. Libraries just happen to have £70,000-£100,000 a year itching to be spent on licensing and support costs burning a hole in their budgets.
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7. All of the other libraries in the city / area / country bought [X] so it must be a good piece of software.
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8. The decision was made outside the library, e.g. by ICT, by the Research Office, by the Registrar, etc. (thanks, @pennyb)
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9. The library would have to run such an extensive systems implementation as a project and don't have project management experience.
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10. The library would have to know about software development and don't have waterfall / Agile / etc. experience.
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11. Senior library managers didn't even know about open-source alternative [Q] because [Q] doesn't do big conferences or marketing.
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12. Even widely-used 'free' software in libraries is developed by people who choose not to license it as open-source (this one's a subtweet)
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14. "The previous library director / assistant director / head of systems bought it and tied us into a 4-year contract."