Virtual Worlds Friday, May 9, 2008 San Francisco CA Melanie Swan MS Futures Group Palo Alto, CA 415-505-4426 [email_address] www.melanieswan.com

Virtual worlds summary Virtual worlds are the natural evolution of the Internet as an information, communications and commerce platform Virtual worlds are becoming increasingly routine for business, academic and government use Like other newtech, virtual worlds are complementary and category defining Virtual worlds are not just for architectural builds, simulation and interaction, the next obvious step is streaming in live data and representing it visually

Virtual worlds are the natural evolution of the Internet as an information, communications and commerce platform

Virtual worlds are becoming increasingly routine for business, academic and government use

Like other newtech, virtual worlds are complementary and category defining

Virtual worlds are not just for architectural builds, simulation and interaction, the next obvious step is streaming in live data and representing it visually

Agenda Virtual worlds What are virtual worlds? Who is using virtual worlds? Second Life A closer look Technical details Economy Accounting, tax and legal issues Advanced data applications 3D command centers / green data centers Data visualization tools Opportunities for your firm

Virtual worlds

What are virtual worlds?

Who is using virtual worlds?

Second Life

A closer look

Technical details

Economy

Accounting, tax and legal issues

Advanced data applications

3D command centers / green data centers

Data visualization tools

Opportunities for your firm

What are virtual worlds? Source: http://www.virtualworldsreview.com Definition: 3D online persistent world with a sense of presence and simultaneous experience in context; 3D social network

Definition: 3D online persistent world with a sense of presence and simultaneous experience in context; 3D social network

Virtual world vs. MMORPG  Game  World Source: Linden Lab

Who is using virtual worlds? IBM Dr. Dobbs Life 2.0 Conference International Spaceflight Museum Showtime “The L Word” CBS “CSI New York” Vodafone SLCN “Metanomics” Princeton US Congress Second Health Operating Theater

Corporate presence in virtual worlds

Second Life is the biggest virtual world 45,000 concurrency (at any time) 475,000 active users (last 7 days) 1.2 m active users (last 2 months) 13 m total accounts 2 m assets created per day 35 TB of user-created data 800,000 unique items sold or traded per month 500 events per day 15 m concurrent scripts 10 Gbps peak bandwidth Source: http://secondlife.com/whatis/economy-graphs.php Million Square Meters of Second Life Land Total User Hours (millions) Source: Linden Lab

45,000 concurrency (at any time)

475,000 active users (last 7 days)

1.2 m active users (last 2 months)

13 m total accounts

2 m assets created per day

35 TB of user-created data

800,000 unique items sold or traded per month

500 events per day

15 m concurrent scripts

10 Gbps peak bandwidth

Diverse Second Life residents Source: http://static.secondlife.com/economy/stats_200804.xls 43% female 60% international Top 5 countries: US, Germany, Japan, UK, France Average monthly hours by age tier Resident market share by age tier %

43% female

60% international

Top 5 countries: US, Germany, Japan, UK, France

Technical details Linden Scripting Language (LSL) Event-driven and states, not object oriented Havok 4 physics engine Primitives, assets and lag Open-source initiatives Client exists Server TBA Standards and portability Security Griefer attack Open standards information: http://opensimulator.org, https://wiki.secondlife.com/wiki/Architecture_Working_Group Linden Scripting Language

Linden Scripting Language (LSL)

Event-driven and states, not object oriented

Havok 4 physics engine

Primitives, assets and lag

Open-source initiatives

Client exists

Server TBA

Standards and portability

Security

Economy and Linden$ currency Source: http://secondlife.reuters.com US$ Spent by Users (in Millions) US $ Exchanged on Lindex (in Millions) LindeX exchange operated by Linden Lab Buy: USD $.30 transaction fee Sell: 3.5% transaction fee Monetary policy Banks, stock exchanges US Dollars spent in Second Life over the last 24 hours Source: http://secondlife.com/whatis/economy-graphs.php

LindeX exchange operated by Linden Lab

Buy: USD $.30 transaction fee

Sell: 3.5% transaction fee

Monetary policy

Banks, stock exchanges

Land is the most significant virtual asset Source: http://www.secondlife.com Available plots Available island areas Raw Land Growth of Second Life Purchase via auction or resale Premium membership required ($9.95/mo) USD $13 + $5/mo for 512 sq m USD $1,675 + $295/mo for 65,536 sq m island Anshe Chung Real Estate Developer 2008 2005 2003

Purchase via auction or resale

Premium membership required ($9.95/mo)

USD $13 + $5/mo for 512 sq m

USD $1,675 + $295/mo for 65,536 sq m island

Virtual world accounting and valuation issues Intangible assets Land and real estate Objects Scripts, animations and applications In-world businesses: product, service Brands: sim, business, avatar Accounts: avatars/characters, assets World platforms Specific risks World disappearance Economic disturbance Ease of copying Low transparency Motorati SpokesAvatar: caLLie cLine BarCamp Second Life

Intangible assets

Land and real estate

Objects

Scripts, animations and applications

In-world businesses: product, service

Brands: sim, business, avatar

Accounts: avatars/characters, assets

World platforms

Specific risks

World disappearance

Economic disturbance

Ease of copying

Low transparency

Virtual world tax issues VAT, sales tax Income tax 1099 contractors Gains tax Challenges of levying tax Identity verification Jurisdiction determination Identification of activity Monitoring, tracking and enforcement Highly international environment

VAT, sales tax

Income tax

1099 contractors

Gains tax

Challenges of levying tax

Identity verification

Jurisdiction determination

Identification of activity

Monitoring, tracking and enforcement

Highly international environment

Legal and other issues Key rules Linden Lab: Terms of Service Agreement, Community Standards, Privacy Policy, Digital Millennium Copyright Act Sim covenants Dispute resolution Metaverse Republic Recent cases Eros, LLC v. Doe (pending) Copyright infringement (US $2,250) Marc Bragg v. Linden Lab (Oct 2007) Land acquisition via landbots (US $8,000) Money laundering

Key rules

Linden Lab: Terms of Service Agreement, Community Standards, Privacy Policy, Digital Millennium Copyright Act

Sim covenants

Dispute resolution

Metaverse Republic

Recent cases

Eros, LLC v. Doe (pending)

Copyright infringement (US $2,250)

Marc Bragg v. Linden Lab (Oct 2007)

Land acquisition via landbots (US $8,000)

Money laundering

Data visualization: IBM’s 3D command centers SLurl: http://slurl.com/secondlife/IBM%209/170/124/141 IBM’s green data centers, VNOCs (virtual network operating centers)

Eolus and Smiley 3D command centers Smiley Telescope, PARI, Balsam Grove, NC USA Smiley in Second Life Smiley Virtual Control Room: real-time radio data received into 3D graph SLurl: http://slurl.com/secondlife/ strace%20island/55/43/27 SLurl: http://slurl.com/secondlife/EOLUS/170/139/42 Eolus enterprise facilities management control room

Data visualization: data representation tools SLurl: http://slurl.com/secondlife/uvvy2/90/243/29 SLurl: http://slurl.com/secondlife/SciLands/170/92/28 GreenPhosphor’s Glasshouse plotter MS Futures Groups’ 3D Stock Chart

VIT Mindmap SLurl: http://slurl.com/secondlife/VIT%20World/128/128/0

SLurl: http://slurl.com/secondlife/ACS/174/82/114 Cheminformatic-Assisted Image Array (CAIA) 8 images 24 meters 36 meters 12 images

Data visualization in Second Life Real-time LAX airport traffic Real-time NOAA weather data SAP airline booking application Wiki: http://sldataviz.pbwiki.com SAP eCommerce

Enterprise virtual worlds: Qwaq, Wonderland Nanotechnology Island SIMS microscope BASHIBA Data Climate eCommerce Qwaq Forums Sun’s Wonderland

Virtual world ecosystem Investment transaction in the last 12 months or was acquired Virtual World Platforms Linden Lab’s Second Life , ActiveWorlds, Entropia Universe, There, Kaneva, MultiVerse, vastpark, metaplace, Cybertown, Habbo Hotel, Muse, Taatu, Whyville, Voodoo Chat, Traveler, Sims Online, Club Penguin, WebKins, Hipihi, Uonenet, Noviking 3D Modeling and Physics Engine Platforms Havok , Ageia PhysX, Unreal Engine, Open GL, Maya, 3D Studio, Croquet, SoftimageIXSI, Form Z, Strata 3D CX, RenderMan, Blender, Wings3D Virtual Businesses and Brands SL Boutique , Anshe Chung Studios, DeCuir Creations, FairChang, Etopia, Hunter’s Cove, Preen, House of Nyla, Second Life Cable Network, Rezzable, caLLie cLine, PeoplePool, Raven Pennyfeather, Lapointe & Bastchild Designs, InStyle, Vista Animations, Chai Skins, Acedia Albion, AV Puli Animations, Reel Expression, J&S Aviation, SZ Designs, Vindy Vindaloo, Esoterica Couture Virtual World Developers and Agencies Electric Sheep Company , Millions of Us , Rivers Run Red, CMP, Aimee Weber Studio, Campfire Media, depo consulting, Forterra, Metaversatility, Wish Farmers, Virtual Worldlets, Icarus Studios, Proton Media, NGI Group 3Di, DAZ 3D, Code 4 Software

Opportunities for your firm Provide industry leadership Virtual worlds white papers OpenSim working group Data visualization development Support clients in the virtual medium Platform counseling Enterprise simulation setup 3D command center setup Security and traffic management (SOX) Interaction opportunity Facilitate internal initiatives Recruiting, telepresence, collaboration

Provide industry leadership

Virtual worlds white papers

OpenSim working group

Data visualization development

Support clients in the virtual medium

Platform counseling

Enterprise simulation setup

3D command center setup

Security and traffic management (SOX)

Interaction opportunity

Facilitate internal initiatives

Recruiting, telepresence, collaboration

Virtual worlds summary Virtual worlds are the natural evolution of the Internet as an information, communications and commerce platform Virtual worlds are becoming increasingly routine for business, academic and government use Like other newtech, virtual worlds are complementary and category defining Virtual worlds are not just for architectural builds, simulation and interaction, the next obvious step is streaming in live data and representing it visually

Virtual worlds are the natural evolution of the Internet as an information, communications and commerce platform

Virtual worlds are becoming increasingly routine for business, academic and government use

Like other newtech, virtual worlds are complementary and category defining

Virtual worlds are not just for architectural builds, simulation and interaction, the next obvious step is streaming in live data and representing it visually

Resources Open standards and data visualization http://opensimulator.org https://wiki.secondlife.com/wiki/Architecture_Working_Group http://sldataviz.pbwiki.com and Data Visualization group Second Life SLURL Directories http://nbhorizons.com/list.htm (companies) http://edumuve.com/tour/ (international locations) http://npsl.wikispaces.com/Tenant+Directory (non-profits) Getting started in Second Life http://sl.nmc.org/wiki/Getting_Started Event listings http://secondlife.com/events http://metanomics.net/ * News, blogs, etc. http://secondlife.reuters.com/ * http://www.ugotrade.com/ http://www.virtualworldsreview.com/ * Business-related

Open standards and data visualization

http://opensimulator.org

https://wiki.secondlife.com/wiki/Architecture_Working_Group

http://sldataviz.pbwiki.com and Data Visualization group

Second Life SLURL Directories

http://nbhorizons.com/list.htm (companies)

http://edumuve.com/tour/ (international locations)

http://npsl.wikispaces.com/Tenant+Directory (non-profits)

Getting started in Second Life

http://sl.nmc.org/wiki/Getting_Started

Event listings

http://secondlife.com/events

http://metanomics.net/ *

News, blogs, etc.

http://secondlife.reuters.com/ *

http://www.ugotrade.com/

http://www.virtualworldsreview.com/

Provided under an open source Creative Commons 3.0 license http://creativecommons.org/licenses/by-nc-sa/3.0/ Thank you Melanie Swan MS Futures Group Palo Alto, CA 415-505-4426 [email_address] www.melanieswan.com