SL5B Closure: Annual Prizes and disruptive technology

Today saw the closing address by Linden Lab’s board Chairman, Mitch Kapor.

Dusan Writer has an excellent write up but the take home messages for me were:

1. The announcement of an annual ten thousand dollar prize for achievement in Second life. Judges will be drawn from a wide range of sources including Second Life residents. Here’s hoping that 10K is US dollars, not Linden Dollars.

2. That Linden Lab not surprisingly remain fixed to the idea of Second Life as a disruptive technology platform being utilised by virtual world pioneers with particular succes sin education and health. Nothing earth shattering there and Linden Lab can hardly argue they have a well established platform with mainstream appeal – imagine the questions around profitability then.

What has Second Life achieved in five years?

With the upcoming five year anniversary of Second Life’s public existence, there’ll be plenty of editorialising and we’re not about to miss out. Below are the key achievements and challenges arising from Second Life’s first five years.

The achievements:

1. Changing the landscape

There’s no doubt that Second Life broke some serious new ground over the past five years. It was the first virtual world that gave residents enormous freedom and ownership over their creations. This alone makes the past five years a worthwhile exercise. Until then, there were gaming worlds and more restrictive social worlds like The Sims Online. Most importantly, it’s started to change the mindset of the broader population – virtual worlds are no longer just some freaky hobby experienced by a few.

2. Growth

In June 2003 there were 623 registered users of Second Life. Now there’s around 14 million registered users. Using the traditional method of a 10% active user base, that’s 1.4 million active users worldwide. That’s certainly growth, albeit not growth that matches gaming world success stories like World of Warcraft. Given some of the challenges listed below, this growth is arguably surprising and a testament to the user-driven community in Second Life.

3. Marketing

There’s no doubt that Linden Lab have had some real marketing successes, although the biggest story wasn’t created by them – Anshe Chung’s first miilion dollars . There was a deluge of new residents in late 2006 came and Linden Lab ensured the momentum continued well into 2007. The gambling, banking and ageplay bans weren’t perhaps handled as well, but overall Second Life is still perceived as a viable and attractive option in spite of its shortcomings.

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4. Transparency

Linden Lab do try at times to maintain some transparency around their decisions and operations although I believe this has declined in some areas over the past year. They’re far from perfect in this regard but still a step ahead of a lot of tech companies.

The challenges:

1. Usability

This is by far and away the biggest issue facing Second Life, particularly if you live outside the USA. Linden Lab have actively touted 2008 as the year of improving the Second Life experience and there’s still a long way to go. It’s now well over a year since the word ‘soon’ was uttered in regard to SL servers based in Australia. Until this occurs there’s little likelihood of significant growth locally as the experience for most people is frustrating to say the least.

2. Relevance

With so many competitors on the horizon, SL will have a battle to maintain its market share, let alone increase it significantly. That said, the open source corse Linden Lab have taken ensures it remains the preeminent virtual worlds platform for now.

3. Interoperability

The works well underway in ensuring different worlds can directly interact but there’s an enormous amount of work still to be done. Projects like OpenSim are leading the way and the list of new grids continues to grow but OpenSim will continue to have an uphill battle against the large number of proprietary worlds underway.

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4. Governance

I don’t envy Linden Lab at all as far as its role in deciding what’s acceptable or not. The numerous legal jurisdictions are enough to turn any risk manager’s hair white overnight. Things aren’t going to get any easier either as real world governments finally start to grasp the impact of virtual worlds in a range of areas – intellectual property, taxation, and health and welfare are the three more obvious ones. Linden Lab’s banking ban, ageplay intervention and gambling crackdown have had varying degrees of success – expect more intervention in coming months and years.

The overall report card

It’s hard to imagine that any company could pull off a faultless virtual world creation and expansion, so at the very least some credit needs to be given to Linden Lab, faults and all. The continued expansion of the organisation in a coherent way will make the difference between a relevant and ever-improving virtual world platform and a declining pioneer that lost its way.

Here’s to another five years of innovation and inspiration – and maybe even a more usable virtual worlds for those of us down here.

Over to you – what do you consider have been the highlights and lowlights of Second Life’s first five years?

Linden Lab’s new CEO speaks

Well, he writes a few paragraphs at least, on the Official Linden Blog. It’s a fairly lucid description of his first week, with the standout line for me being:

“Inworld collaboration is going to be a killer application”

Yes indeed it is – when it’s working and even then it’s not so killer when you’re living so far away from the SL servers – that’s an issue I’m hoping is on the radar.

The ABC in Second Life: are the monkeys running the zoo?

ABC Island has had an eventful time in Second Life over the past year or more. From an Australian viewpoint, it’s been a real role model for a community-driven Second Life presence. Core to that are the ABC Admins, who’ve put in countless hours developing the island, organising activities and dealing with the inevitable griefers or other troublemakers.

That core group appears to be now in conflict, if the below statement from former ABC Admin Sakkano Imako is anything to go by. An important note: a name has been removed plus one inflammatory sentence – the removal of both doesn’t detract from the overall story and protects particular individuals from unverifiable claims that would impact on their reputations.

We’ve contacted the ABC for comment on this story and will publish their response when we receive it.

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“Dear ABC Admin,

It has come to my attention that ABC is essentially in the midst of a coup d’état. How have I come to this conclusion? Simply put, I cannot fully accept that all changes that have happened by the hand of [name removed] have been done with the approval of either ABC or the owners of the Laneways parcel. How is it that for previous months, suggestions on how to change these areas were answered with a “I can’t do that because I don’t have permission?” Yet, the galleries have sprung up in very little time without any real consultation to the admin as a whole. Nor have we, as admin, seen approval from the company for these changes.

I also suspect this because of the sudden incursion of Big Pond members. It is my belief that this coup d’état has occurred because people from Big Pond have thought that if they can use ABC as a venue, they may gain prestige.

Now, I have some questions:

Can someone tell me why the signs that discouraged weapons, commerce, and sex have been removed? Second Life is not exclusive to only people who speak English. How can we be expected to enforce rules on people who do not understand English?

Please, someone tell me why ABC is not advertising itself or it’s programming, and yet it’s being made to house art? It is my thought that our new admin friends have landed to make ABC nothing more than an extention of Big Pond. And they are only using ABC to advance their own desires, rather than helping ABC’s presence be felt in the virtual world, and potentially internationally.

Please someone explain to me the unbecoming behavior of some Admins taking a “hands off” approach. Why are admins turning their back as people walk in with weapons, sexual objects, LL contraband, and commerce items? I would have almost half expected some of our current admin members to have posed sultry against the Hippie Pay kiosk I returned. A kiosk in which someone makes money off residents who don’t understand how those objects actually work. How can this behavior potentially benefit ABC? It does not and it will not.

When people write out incident reports, when other admin refuse to accept these cards, does this not demonstrate a lack of concern for the ABC Island? And what does it say to new admin who are actually trying to do their jobs proper? This it totally unacceptable behavior on so many levels.

In short, monkeys have started to run the zoo. I only hope the company will take a look at these horrific events and decided to scrap the island and start over with a new batch of people who are less likely to become slaves to greed and over inflated egos.

And because I believe that such monkeys smell to high heaven, I am excusing myself. I want nothing to do with such unprofessional and unbecoming behavior. I only stayed as long as I did because it was bad form to just up and leave after coming back from a vacation. But if no one else seems interested in doing the dirty work, I refuse to become the muckraker to such people who don’t want to do all the work expected of admins.

I wish to suggest that some of the admin start working, or else nothing will be accomplished. Wandering around and looking pretty is hardly helping things. Admin are given their privileges because they are to help out in every way. There are no art directors, curators, or assistants. There are only admin. Admin must work to keep the sim going. If admin don’t work for the sim, then the sim fails. Residents can operate as those things mentioned, but being admin is first and foremost.

In conclusion, the sim is no longer what it was supposed to be and the system that was in place to help it run properly has been broken by individuals who apparently do not understand the responsibilities and duties granted to them as being admin. If it is not remedied soon, we can expect more problems.

The easiest solution at this time, that would best benefit the ABC company, would be to scrap the island as it is and start over. It needs new people who are interested in seeing ABC become a sim that promotes the COMPANY rather than the INDIVIDUAL. It needs people who will conduct official business and duties in a more professional and friendly manner.

–Sakkano Imako
Graduate of Indiana Business College
Associate of Applied Science in Business Management
American based Second Life resident
Former ABC Admin”
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It’s hard to gauge the level of conflict within the admin group (Disclosure: I am a member of the ABC Admin group, albeit a quite inactive one aside from taking an interest in covering Australian events in Second Life). My take is that any group of people working together for an extended period of time is likely to run into conflict, particularly as that group grows.

It’s also further reinforcement that virtual worlds contain a lot of the same interpersonal challenges that the real world does. It illustrates the difficulties posed for any business who worries about their brand being muddied by the inherent uncertainties or user-created worlds like Second Life. Those same difficulties however, are some of the most fascinating aspects of a virtual world existence.

Update: Fellow Aussie Second Life resident has some detailed thoughts on ABC Island as well.

Linden Lab’s new CEO: Mark Kingdon

Linden Lab have announced the appointment of their new CEO, former Organic Inc. CEO Mark Kingdon.

There’ll be endless analysis and speculation on Kingdon in coming days and weeks – the reality is likely to be a CEO who knows he needs to meet the expectations of a board whose chairman filled his shoes previously. It’s hard to imagine any radical change in business approach, although Kingdon’s previous role with Organic may be telling: they describe themselves as leaders in ’empathy-based experience design’. That’s something that can always be used with Second Life.

The full press release from Linden Lab:

Linden Lab Appoints Mark Kingdon As Chief Executive Officer
Former CEO of Organic to lead company into next phase of its evolution

SAN FRANCISCO, Calif., April 22, 2008 – Linden Lab ®, the developer of the 3D virtual world Second Life®, today announced that its board of directors has named Mark Kingdon to serve as chief executive officer. In his new role,
Kingdon will lead the day-to-day management and operations of the company, working closely alongside Linden Lab founder, former CEO and current chairman Philip Rosedale.

Since 2001, prior to joining Linden Lab, Kingdon served as chief executive officer of Organic Inc. , a leading digital communications agency, establishing its reputation as a groundbreaking, innovative provider of user-centered design. Prior to Organic, Kingdon worked with idealab!, providing strategic guidance and operational support to emerging companies. Before that, Kingdon was a partner with the consulting division of PricewaterhouseCoopers, LLP (PwC), where he held a variety of senior roles throughout his twelve-year tenure. He received an MBA from the Wharton School of Business and a BA in Economics from UCLA.

“Our search for the leader of Linden Lab demanded both tremendous business skills and a deep understanding and passion for Second Life and where it is going. Mark is the perfect choice,” said Philip Rosedale, founder and chairman of the board, Linden Lab. “His management style, unwavering leadership in the face of great challenges, and approach to team-building exactly matches Linden’s needs. He is a passionate believer in the potential of virtual worlds to change the world, and I look forward to working by his side while we watch it happen.”

“We wanted to find someone with an exceptional blend of strategic, analytic, business and leadership skills, but also with endless creativity and a passion for the company and growing the virtual worlds category,” said Mitch Kapor, founder of Lotus Development Corporation and a Linden Lab board member. “Mark has demonstrated all of these attributes throughout his career, particularly at Organic, which, like Linden Lab, puts an incredible emphasis on overall user experience and design.”

“Joining Linden Lab at this moment in its evolution, with so much growth and opportunity on the horizon, is incredibly exciting and I look forward to working with Philip and the Linden Lab team to help Second Life realize its limitless potential,” said Mark Kingdon, Chief Executive Officer, Linden Lab. “To me, the CEO role at Linden Lab combines perfectly my passions for art and design, business and technology. Until Second Life, we experienced the digital world passively in two dimensions. By enabling users to create a rich and immersive virtual world, Second Life is transforming the way we connect, collaborate, learn and transact online. I am thrilled to be part of this epic transformation.”

Kingdon assumes the position full time on May 15, 2008.”

And they wonder why people leave Second Life

I understand that the logistics of running the Second Life grid must be one hell of a task. That said, the announcement by Linden Lab that in peak usage times they’ll be disabling some of the in-world services to cope seems farcical to me. It’s the equivalent of shutting off the lights on a passenger airliner to maximise power for take-off, except in this case the lights are off for around four hours.

The services affected are:

“* Avatar profile information will not be trasmitted to the viewer. This affects both floating and embedded profile windows.

* General group information (name, charter, etc.) will not display in floating or group embedded group info windows.

* Groups will not show their member lists.

* Group owners and officers will not be able to eject group members.

* Group proposals will open the UI, but will fail to create.

* About Land will show 0 for traffic.”

Some will argue these aren’t show-stopper services but I know some people heavily use the avatar profile and group services. Furthermore, it’s the principle of the issue – I’d go as far as to say I’d rather a couple of thousand people less be permitted on the grid with full functionality than the ‘solution’ proposed.

Linden Lab are claiming a fix is on the way – you’d want to hope so because a plane full of passengers sitting in the dark doesn’t make for an experience people want to pay for again.

Linden Lab’s I-World island: window-dressing or real help?

Linden Lab have announced an enhancement of their in-world support through the creation of I-World Island, which will launch on the 5th April. It’s fair to say that Linden Lab have made progress in their in-world support, although it’s still hard not to agree with one commenter on the Linden blog where the announcement was made:

“While that is a nice idea just how do you expect someone who crashes 10 times a day to find your island, and if they did, how do you expect them to get there without crashing?”

Linden Lab have widely proclaimed 2008 as the year of usability – hopefully I-World Island is another weapon in what needs to be a much larger armoury.

Linden Lab’s CEO steps aside

According to a Reuters story, Philip Rosedale (SL: Philip Linden) is standing down from his role as Linden Lab CEO. From what I can see it’s a Bill Gates-like decision of getting away from the day-to-day burdens of running a company to focus on wider issues.

If anything, this is likely to help the company and the initial response seems to be positive. I can’t see any fundamental shift in Linden Lab’s approach beyond getting some more discipline in its business operations. If the new CEO can achieve that discipline whilst maintaining Linden Lab’s relatively good transparency, there may be promising times ahead.

What do you think? How’s this likely to change Linden Lab and Second Life?

Other coverage:

Massively

GigaOM

Second Life Herald

Terra Nova

Virtual Worlds News

Sydney Morning Herald

All bulked up and nowhere to go.

I didn’t write last week. Why? Writer’s block, plain and simple. All bulk, no fiber, no water. Nothing flowing. Staring at blank document. No juice. Cranial constipation. (And, at the moment, I am battling some kind of cold that really, really, really, wants my attention, like a needy 5-year-old tugging on the kitchen dress of my awareness; shooing it away with a flour-dusted hand is ineffective and laughable.)

wrtrsblk1.jpgAs it happens, I am kind of experiencing a similar thing in Second Life. (God, are my segues cool or what? Inelegant at times, but it comes with the territory. Suck it up. I have. ) I’ve found I’m running into a similar malaise in-world. If it weren’t for the building I’ve been doing for a friend who is developing mixed-use facilities on a private sim, and my SL girlfriend who– despite our occasional miscommunications and her somewhat lengthy bouts of afk, is still my source of energy– I’d be in-world a lot less these days. RL pressures are mounting, and I am a lot less inspired to hang around a sim. I continue to beta-test, running to SL in order to escape some RL grindings, only to find similar grindings in SL. However, the approach in SL allows me to work out some RL things, if only by virtue of the fact that I can de-pressurise the brain long enough to allow some blockage to clear. This is not a fool-proof theory; to wit, last week’s absence. But with a little more application, it might be a workable one. “Keep banging it with a hammer, you’re bound to fix it, somehow!”

On a marginally related note (and this does not qualify for a ‘cool segue’ award)…there’s an interesting backlash of sorts beginning to occur. I find myself wishing I could walk to the bottom of the lake that I live next door to, as easy and as unencumbered as in SL. What would I do there? Dunno. Can’t rez an object, so I might be limited to sucker-punching a couple of aggressive fish. But walking at the bottom of the lake or ocean or other body of water, to get to the other side, is starting to sound perfectly doable.

On a more practical note, I was out shooting photos on Sunday–good day for it, too… overcast, snowing, big city–and I found myself wishing–nay, expecting–to be able to fly up two or three stories to get that particular angle of Union Station I wanted to, without having to burden myself with contacting the tenants of the offices above me, explain my request, and jump through hoops to point a camera out a window. It’s amazing how quickly one can adapt to the creature comforts of SL. The line gets blurred with mental statements such as “Well, I’ll just fly up there and….oh, hell.”, statements that suddenly seem perfectly normal in RL carry the reality of encouraging men with white jackets to engage in footchase through the city streets.

I looked up the offices in the building directory…I’ll ring them this week.

Y’know, whoever makes this daytime cold medicine–shilling on the premise and promise of “non-drowsiness”–should really own up to the other side effects of the concoction. The pine trees outside my townhouse are bending down, trying to open my windows from the outside, my cats are dialing the telephone and ordering pizza (in perfect German, no less), and the entire contents of my closet are rearranging themselves in order of color. To make matters worse, I can’t really focus my eyes.

Perhaps that’s a good thing.

Maybe it’s even better I don’t have a wetsuit.

A timely treatise on virtual worlds and enterprise

I’ve mentioned next week’s Enterprise 2.0 forum in Sydney previously. At Stanford University in the US, an event called MetaverseU is well underway and in recent hours a session was completed on the role of virtual worlds and work. It’s a timely coincidence of events. This excellent report is worth a read but I thought I’d highlight some of the key points from that information:

“The opportunity for these worlds to be entertaining pales in their opportunity for work,” said Reeves. “If we could figure out how to entertain a couple thousand call center employees and keep them in a virtual world while they were working and they stayed around for three months longer at their jobs, I think we’d have a multi-million dollar business on our hands.”

This is a key component that most businesses fail to grasp with virtual worlds and enterprise: it’s one of the likely ways in which productivity can be enhanced whilst ensuring some degree of entertainment. I doubt anyone would argue the reason for widespread use of the internet for non-work purposes on work time is anything other than boredom and a time-constrained lifestyle. Imagine a call centre employee being able to interact with a customer in a virtual world context, demonstrating the product they’re supporting or selling.

“Something the industry needs to understand is to put yourself in your customers shoes,” he explained. “They have a lot of risk in taking this technology on. They might get a lot of benefit, but there’s the risk that this technology isn’t going to be there tomorrow. We need to, as an industry and as customers, put a lot of work together to make this more of an affirming cycle.”

There’s no doubt that the majority of customers don’t see virtual worlds as an obvious business route, but as the opportunities that route offers combines with easier access and improved usability, the business equation becomes a lot more attractive.

The immediate use case for virtual worlds in the enterprise, said Steiger, isn’t dealing with his clients and partners. 70% of his business is with people he’s never met. The difference is in an employee-to-employee relationship. A hosted, behind-the-firewall solution could make that easier.

And that’s where the big success stories like IBM have demonstrated their key wins and why Australian companies like Westpac have made the investment.

“You can’t understand the primitive engagement that comes from puppeteering a cartoon character that looks kind of like us,” said Reeves. “When you look at the physiological response when an avatar gets touched, there’s a complementary reaction in the user. Brining those responses in for an ROI presentation is tough, but those responses that we see in the lab give me confidence that the bandwidth for communication is a value add for the engagement.”

Business is rightly skeptical about anything proposed for core operations that can’t demonstrate ROI – but the intrinsic nature of human interactions and the power virtual worlds bring to that can’t be underestimated. And the key point from the presentation for me:

The scary thing for executives, he says, is that guild leader gamers could be reporting to stockholders.

“IBM just did such a survey [looking for those gamers in management] and found 1000s,” said Reeves.

As the gamer generation is growing up and leading the workforce, game mechanics become much more appealing than spreadsheets for getting work done.

“To do that is not going to be quick in the enterprise,” said Reeves. “One strategy we’re looking at is to look at the recipe for why these worlds are engaging or why games are engaging and see what you can extract. Can you take the economies from the virtual environment? They’re fun and we know they light up the same neurological regions in the lab as real money does. They leave behind self-representation and 3D environments, but they’re worth looking at.”

It’s fair to say that developments in virtual worlds are something that enterprise needs to be at least aware of. Ideally they’ll have the resources to dip their toe in the water or even jump right in. The only option not on the table from an enterprise viewpoint is denial.

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