This paper reports the findings of a case study of Roskilde University Library (RUB), a research library supporting learning activities at Roskilde University. The investigation has focused on the main issues related to innovation that RUB had to deal with due to the advent of Internet and e-services as well as the future challenges that e-services provide for RUB. In addition the consequences of e-services adoption for Roskilde University library organization, its business model as well as relationships with customers, publishers (providers of knowledge) and other research libraries in Denmark have been investigated. The main results can be summarized as follows: 1) Adoption of e-services has forced RUB to innovate at a very fast pace. Innovation is driven, among other factors, by ICT development (technology push), but innovation is also pervasive throughout the organization and user-driven. 2) E-services have changed the organizational structure and the division of labour within the library by moving more and more towards IT-based jobs and competences. 3) E-services have changed the relationships with users and publishers. 4) E-services have changed the business model of the library. 5) RUB is becoming a combination of a virtual and physical library, moving more and more towards a virtual library, but still keeping the traditional function of a “knowledge space”.