Usman Asar

Nishant, that I cannot assure if the Glossary plug-in will work just like a library as so far what I have used Glossary as, it can become a useful database of words explained with pictorial references, but an e-book library it cannot become unfortunately.

You can however have a look at another option Librarika (https://librarika.com/), that allows creation of free libraries with up to 10,000 titles/records.

and other possibilities are, Koha (http://www.koha.org/) and EverGreen (http://evergreen-ils.org/)

Nishant, the library Module in that videos is external application like Just H mentioned, created in probably Drupal or Joomla later on to be added as a link inside of Moodle so essentially its not a part of moodle but only linked inside Moodle.

Unfortunately you MAY wont be able to get any assistance as this has nothing to do with Moodle itself. you've to search for online resources creating an online library in Drupal or Joomla or even wordpress may have some thing available to create this (I am sure there will be plenty).

Just for your confirmation, this is the Moodle page for Pitts community college (Making use of Essential theme) (https://goo.gl/dn6t0T)

and the library is located here (http://goo.gl/XJJIIZ)

I am now having difficulty assessing the situation, as you mentioned bandwidth constraints, and now you are mentioning "not exposing the application" to internet, so where is the bandwidth limitation coming from then?
yes you can run videos locally as well without uploading them to a server. but if you are offering videos globally, then don't call it intranet, it becomes internet.

Have, you, by any chance, installed IIS? or any other thing that  is making use of Port 80, Like Skype and MS SQL Server reporting services?

Tested on 3.0, so far so good.

looks like everyone tests the theme at the same time, as S.Ali's message just appeared as I was hitting reply link.