This article discusses the impact of information technology requirements on the costs of electronic libraries. The fast‐paced developments of technology require continual updating of hardware and software. Networking access consists of initial costs and recurring expenses. Electronic content, training, and support all demand ongoing expenditures. In this environment institutions must budget accordingly. One‐time outlays from grant‐funding agencies or parent institutions will not meet the demands of the information technology marketplace. This article asks key questions concerning hardware, software and network installation and upgrades and provides strategies for dealing with the needs for continuous funding and long‐term financing that are essential for keeping up with the requirements of the electronic library.
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