With today's relatively flat budgets, research libraries are finding their buying power further diminished by the hyperinflationary costs of library materials. Yet technology innovation, coupled with organizational restructuring, is enabling libraries not only to provide more high-quality information services but also to achieve unparalleled efficiencies in the way they do business. Money from the costs avoided is being invested in new collections and services. For example, we estimate that through their close collaboration, the eleven university libraries of the University of California (UC) annually achieve a 30 percent efficiency by avoiding at least $80 million in costs on a total combined budget of approximately $240 million.