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Companies Keep it Virtual

While collecting some background info for my last post, I discovered that Philips is one of the real-world companies that have established a presence in Second Life, the 3-D virtual world developed by Linden Lab, featuring avatars, digital creations and a real economy. I’ve been following Second Life with mild curiosity for about two years, but things have gotten really interesting in the past two months. During that time, registered accounts have increased significantly, along with the number of participating real-world companies.

On October 18, 2006, the number of registered accounts in Second Life reached one million. A mere eight weeks later, on December 14, 2006, that number reached two million. The figure does not represent unique users (a single user can create multiple accounts) but the growth is still impressive. Even more so, is the number and variety of companies jumping into the space. Why do they do it? I’ve compiled a partial list of real-world companies that are involved (or have been involved) in Second Life and some of their reasons for entering this virtual world, culled from press releases and other material on their own websites.

ABN AMRO (Dec 1, 2006) – “ABN AMRO will be organising seminars on Second Life for specific target groups, such as business starters or new graduates (Young Professionals) and Preferred Banking clients. ABN AMRO will also use the virtual world of Second Life to recruit new staff.”

Philips (Nov 29, 2006) – “Philips Design intends to use it’s presence in Second Life to gain feedback on innovation concepts, engage residents in co-creation and gain a deeper understanding of potential opportunities in this virtual environment.”

Dell (November 2006) – “Innovation has always been at the core of Dell. Innovation coupled with the idea of working directly with its customers has now led Dell to participate in Second Life…”

IBM (Oct 25, 2006) – “IBM has more than 230 researchers, consultants and developers using virtual worlds like Second Life to experiment with everything from new social networking tools, to the design of hospitals, schools, and businesses. Already, IBM actively uses Second Life to help alumni and current IBMers connect and collaborate…”

Reuters (Oct 16, 2006) – “Reuters, the global information company, is opening the world’s first virtual news bureau in Second Life.” “The opening of the bureau is part of Reuters strategy to embrace new digital platforms to deliver next generation news and information.”

Sun Microsystems (Oct 10, 2006) – Sun Microsystems launched its presence in Second Life with a press conference at the company's virtual Sun Pavilion. Sun Chief Researcher, John Gage, “pointed to the opportunities for experimentation with new forms of communication, collaboration and economic activity in the virtual world as a driver behind the creation of Sun's new facility.”

Wells Fargo (Sep 14, 2005) – “Wells Fargo today introduced Stagecoach Island, a free, multi-player, online role-playing game developed to teach young adults important lessons in financial literacy.” (Author's Note: Stagecoach Island subsequently moved from Second Life to an alternative platform)

Other companies that have experimented with Second Life include: American Apparel, Adidas, Toyota, Nissan, Sony BMG, Warner Music, and Starwood Hotels.

As the virtual universe matures, it will be interesting to see how these and other companies adapt their strategies. I’m also anxious to see how ordinary Second Life residents react to the presence of more and more companies in their metaverse. Do any of you take part in virtual communities like Second Life? What are your thoughts?

Posted by Nelson T. on December 18, 2006 11:28 PM

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