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Web 2.0 surpasses all previous technologies in its ability to “explicitly leverage network effects” (a definition of Web 2.0 from Tim O’Reilly). But, while virtual worlds pass another classic litmus test of Web 2.0 - two way participation, they have been, up to this point, largely cut off from Web 2.0 power/network effects.

Persistent immersive virtual worlds, led by Second Life, have done well as niche markets but they remain relatively isolated from Web 2.0, even though they bring something  vital and new to the internet - real time interaction and dynamic melded states - in contrast to the current web’s large static files, or small changing files.

The slide opening this post is a modification of a slide from Dion Hinchcliffe’s presentation from his Web 2.0 Expo workshop - Building Successful Next Generation Web 2.0 Applications. Virtual worlds are not anywhere to be found on the original. So I asked Rob Smart, IBM, who has just added JSON support to OpenSim to draw OpenSimulator into this picture. In my interview with Rob, later in this post, he discusses the relationship between virtual worlds and Web 2.0 and how JSON is an important step towards virtual worlds taking up a place in Web 2.0 architecture.

When people think of the current architecture of Web 2.0 virtual worlds do not come to mind. But we are on the cusp of a big change in this regard.  Linden Lab and OpenSim, in the Architectural Working Group, AWG, have been working on trust negotiations and the standardization, documentation and use of http (REST enabling).  But more work remains on standardizing and documenting where TCP and UDP streams have to be used to create the immersive real time interactions that are the heart of what virtual worlds bring to today’s web (see my upcoming interview with Teravus Oursley, OpenSim, for more on this).

There is a complex network of connections through identity (1st and 2nd life) that have enabled virtual worlds to implicitly leverage the social networks of  Web 2.0 (see botgirl’s lovely illustration of this above)  The slide above is from W. James Au’s “The Post-Hype State of Virtual World Marketing: What Works, What Doesn’t and Why.”

Mryl (beta) is an application hoping to streamline these linkages with a social gateway for virtual worlds that will provide what  KZero terms “outeroperability”.  In this vein, Second Life developers have produced a number of interesting high level communications applications, including Chatbridge from Intersection Unlimited, to link Second Life better with the web. I will moderate a panel for Orange Island Innovation Week, Wednesday, Oct 1st, 12 noon PDT, Innovative Communications Devices, with Beyers Sellers, Chase Marellan (Chatbridge), Kevni Koolhaven (Learning Tree International).

But, it is the low level architectural integration of virtual worlds into Web 2.0 (along with improved usability and new User Interfaces) that will weave virtual worlds into the fabric of  Web 2.0 and  our everyday lives.  But unlike Eric Schonfeld of TechCrunch, I see interoperability work (see OpenGrid Beta), and the production of standard protocols (see Open Grid Protocol, OGP) that interoperability work helps negotiate, as an important part of the process.

Immersive virtual worlds are still a long way from mainstream.  I attended the Forrester Business and Technology Leadership Forum in Orlando last week to help Oliver Goh, business development executive at Implenia, talk about delivering results with virtual worlds. We found the audience, while familiar with many aspects of Web 2.0 and its business value,  had relatively little direct experience with virtual worlds. But, the interest and excitement with this technology was very apparent.

Architectural integration of  virtual worlds in Web 2.0 and the standardization of protocols (using existing web standards where possible) will change the picture, creating new opportunities to improve usability, create specific clients for particular needs, facilitate mashups, and leverage network effects, and more!  And, JSON support for OpenSim is an important step as it allows virtual worlds to explicitly begin talking the language of Web 2.0.

Rob Smart is an Emerging Technology Specialist located at IBM Hursley where he works as part of the IBM CIO office Metaverse Initiative. In Second Life he is known as Yossarian Seattle and became known to some as the inventor of the translation HUD, which was his second foray into integrating Virtual Worlds with Web applications. The first project was enabling some of IBM’s messaging products to publish events into Second Life, including creation of an RSS Viewer for Second Life.  Recently, Rob has been working with clients integrating their internal IT services with various virtual world platforms. His interests now extend to the OpenSim project, with a focus on integration of enterprise data and common web APIs into OpenSim.

Interview with Rob Smart, IBM

Tara5 Oh - on the right (me, Tish Shute)  interviewed Yoassarian Seattle (Rob Smart, IBM) in Second Life outside Andy Stanford-Clark’s remote control house on Hursley island  (for more see here)

Tara5 Oh: I am interviewing you from the media lounge at Web 2.0 Expo and coincidently it seems JSON is the hot standard here, in fact, the hottest it seems other than RSS for its ubiquity.

Yossarian Seattle: Yes, well the popularity of JSON stems from increase of AJAX enabled websites that need to frequently pass data between server and web browser and have the javascript in a web-page understand that data. It provides a simple, lightweight way of serialising your server-side objects and doesnt require lots of extra coding in the browser like XML data does.

Tara5 Oh: As virtual worlds are still isolated from many of the network effects of Web 2.0, at the moment could you explain how integrating JSON support to OpenSim is “Web 2.0 made easy for OpenSim?”

Yossarian Seattle: JSON was created to make data exchange from browser to server easy. We want that same exchange between VWs and web servers to be equally as simple. However JSON was written with javascript in mind as you can call a simple eval() function and that’s it, you’re done and you have a nice object to use in the browser. So as a result lots of these nice service APIs out there in Web 2.0 land talk JSON, e.g. Google Translation service, flickrs image querying etc. Also our internal IBM web 2.0 systems talk JSON.

But Second Life and OpenSim so far have poor string handling functions which meant that in LSL, in particualar, parsing anything more than a simple piece of JSON was just not an option.

Lots of coders and developers in Second Life have to run PHP and other scripts on external web servers to act as an intermediary stage in calling thse Web 2.0 APIs.

Thats a real pain, and means you need to have a server somewhere and up full time if others are to use your scripts. Whereas now, with this osParseJSON. function you can forget all that hassle and go straight to the source from OpenSim.

Its a simple but powerful enabler of Web 2.0 technology. I expect it will take people a while to find it and start using it, but it just widens the accessibility for those people who get into scripting in OpenSim.

I’m planning to do a similar thing for XML parsing, but its a bit lower on my priorities at the moment. JSON parsing gives a good quick win so to speak

Tara5 Oh: I just sent you a couple of slides ‘cos one thing I have noticed here at the Web 2.0 Expo is that the understanding of where OpenSim might fit into the architecture of Web 2.0 is vague to zero.

Can you sketch something that relates OpenSim into current understandings of Web 2.0 architecture?

Yossarian Seattle: Really in that first diagram with the APIs etc OpenSim just fits on the level of the web servers. And actually that diagram is a bit wrong as there should arrows between the web servers as sites should really be connected to each other.  I’ll stick in here

OpenSim is being REST enabled. At the moment its access to assets, clothes, objects, etc. from the asset servers. But there is no reason that REST interface cannot give access to people logged on, object positions sim layouts etc.

Tara5 Oh: Could you explain the difference between the power of REST for virtual world technology in relation to the power of JSON?

Yossarian Seattle: So REST is really just calling a web URL. You use the tree structure of the URL to indicate your asking for different data. Whereas JSON is an encoding for the actual data that’s returned to you. So they are complementary really. But there has already been some discussion within the OpenSim community about introducing new APIs to OpenSim that allow different clients to connect.

I personally think that VWs are too siloed currently. At the moment in VWs it’s pretty much one world one client. Providing REST or other interfaces to the world data opens up the possiblity of a wider range of clients accessing those worlds. And when i say clients i’m talking about flash interfaces, browser interfaces or other 3d interfaces such as Unity3d clients.

Tara5 Oh: Could you tell me more about Unity3d?

Yossarian Seattle: Unity3d is a game engine. It’s a very flexible engine and adheres to a lot of the 3d modeling standards etc. One of its most interesting features is the ability to deploy the games/applications you make as web brower plugins (as well as windows/mac stand alone). I’ve been messing around with it for a while now, I can show you some demos while you’re over at the VW conf in London.

Tara5 Oh: Another theme at this conference, raised by O’Reilly in his keynote, is that the future is “world to web,” e.g ., sensor projects etc.

Yossarian Seattle: Ah well that’s another favourite topic of mine with regards to VWs Hursley is the home of realtime messaging technology.

At the moment as I say there is pretty much one VW client to VW server and because the only library to acces SL and OpenSim is openmv( formerly libsl) that restricts new clients to being written in c#  There isn’t a java library, a flash library , a php library a ruby library etc.

So if in OpenSim we add new connectors, REST ones, talking JSON or XML then we enable lots of new client types and VWs become another mashable service in the Web 2.0 world.

Its about making it easy to get information in and information out. Web 2.0 sites don’t do realtime very well, whereas VWs do. VWs are the real time space that the web often tries to provide but kind of half fudges. Web Servers aren’t built to deal with realtime asynchronous data.

Its interesting how you mention Web 2.0 not really acknowledging Virtual Worlds as when I read the terms of service for a lot of the APIs they’re very specific about use from other web sites but they often dont cover the use of the API from other applications.

Tara5 Oh: Really?

Yossarian Seattle: Yes.

Tara5 Oh: What does this mean?

Yossarian Seattlee: It doesn’t necessarily have any significance for some services. But there is often specific text saying for example that you must use a particular piece of HTML on a page and show the API owners logo etc

I think as time goes on though and more people connect to Web 2.0 services from within VWs then they will be acknowledged as a valid service consumer, after all VWs are platforms that provide novel ways for people to display and interact with data.

Tara5 Oh: I know Hursley and other IBMers have done some nice use case of RL data integration in OpenSim and Second Life. What is your favorite for illustrating the power of Virtual Worlds to bring realtime world to web experiences to Web 2.0

Yossarian Seattle: Andy Stanford-Clark’s remote control house on Hursley island is still a favourite.

I did a hook up ages back with a messaging product MQTT and Second Life. I’d like to revisit that work and extend it. i’m interested in propagating events between platforms whether they be VWs or Web sites.

Tara5 Oh: I am amazed how little play virtual worlds have here at the Web 2.0 Expo.

Yossarian Seattle: Virtual Worlds live somewhere between the gaming world and the web 2.0 world. We see it with the flash social worlds too they edge more towards gaming.

Tara5 Oh: What do you think are the gains of virtual worlds getting more integrated with Web 2.0?

Yossarian Seattle: Virtual Worlds are a platform and and its often said by some that they’re not interested in taking part yet as they haven’t yet seen a killer app for Virtual Worlds. Some of that view stems from the fact that VWs are very isolated it’s hard to get content in and hard to get it back out again.

Virtual Worlds are the shared realtime spaces of the Internet, up until now this position has been filled by IRC chat rooms and instant messaging apps. Neither of these forms lend themselves particularly well to group interaction. VWs are streets ahead in terms of rich social interaction and sharing of content and experiences.

Tara5 Oh: You mentioned you just started working on OpenSim development and becoming part of this growing effort.

Yossarian Seattle: Yep thats right. There is a very vibrant community around OpenSim.

Tara5 Oh: Why did you decide to put your energy into OpenSim at this time?

Yossarian Seattle: I’m now working for IBMs CIO office Metaverse initiative and investigating all of the relevant VWs is one of our remits. OpenSim is my chosen focus.

Tara5 Oh: What is CIO?

Yossarian Seattle: One of the IBM CIO office responsibilities is to look at and provide technologies and tools that improve the productivity of IBMers world wide. But as you know IBM has several people working on the OpenSim project and there is an interested community internally. I’m looking at how we can hook up OpenSim to our existing web 2.0 services internally.

Tara5 Oh: What kind of internal Web Services?

Yossarian Seattle: We have a number of internal Web 2.0 based systems that provide APIs for data sharing, things like Blogcentral our internal blogging platform, Fringe which contains customizable profile information, Beehive is a social networking platform helps people share their interests, track and schedule events within IBM. We also have a platform called TAP (Technology Adoption Program) where people can share services and applications they have created with other IBMers. In addition we have Cattail, a file repository that allows easy sharing and tagging of all types of file. There are many more useful internal services than this even all of which could be integrated with OpenSim.

The nice thing is though that OpenSim affords that flexibility to integrate it with our products and with existing web systems, and provide value back to the community at the same time.

Tara5 Oh: So do you have any thoughts about the path to standards for virtual worlds?

Yossarian Seattle: In terms of standards I think it’s a case of look at whats out there and successful at the current time not just in terms of 3d models, but in terms of real time chat protocols like XMPP things like JSON, REST as well and pick those for the relevant components

The reason for this is every time you introduce a new standard, you have to wait for the communities to catch up and write language specific APIs for that standard.

[Better to use existing ones where possible and give the communities that will build the tools and the extensions a head start.

Tara5 Oh: This is also some of why top down standards like MPEG-V have issues?

Yossarian Seattle: Yep, standards often work best when they’re bottom up, like JSON.

As I mentioned before because the messaging structure currently for OpenSim and Second Life is proprietary (although open) and the only library is libsl (openmv) thats stopped a lot of potential innovation by restricting client/bot developemtn to the c# language.

Tara5 Oh: why is client/bot development restricted to c#?

Yossarian Seattle: Because currently the only library you can use to talk the Second Life libsl (openmv) is written in c#

Tara5 Oh: What do you see as the way through this obstacle?

Yossarian Seattle: If for example the messages that went between your SecondLife client and the OpenSim/SecondLife servers was a standard protocol which had a bunch of libraries for a variety of languages. Then you could start logging into VW servers from all kinds of clients

Tara5 Oh: Aren’t there plenty of standard messaging protocols to use?

Yossarian Seattle: Yep, but at the moment they’re not being used. There are some technical reasons for that. like reducing the amount of data to be downloaded etc. But there’s a balance to be had somewhere.

Tara5 Oh: But in a modular architecture like OpenSim what is to stop them being implemented?

Yossarian Seattle: There isn’t anything to stop them being implemented in OpenSim Which is why i like it

Tara5 Oh: I hear a lot about people wanting to change the physics in OpenSim/Second Life (the linking to the physics simulation in particular). Do you have thoughts on this or is it not on your agenda currently?

Yossarian Seattle: There are a few different physics modules already. Though to be honest i don’t think its the most important area to focus on, for me at least.

But obviously a high end physics engine is going to benefit anyone who wants to do any kind of simulation.

And that’s the beauty of Open Source, someone else will have that as their priority.

Yossarian Seattle: I think there’s a lot of work that needs to be done around ease of adoption still. i’d like it to be easy for people to write new clients for OpenSim.

When we get to that stage then people can produce simplified cut down clients to suit their precise need, so if you’re a retailer and just want to showcase products and let people shop you have a UI to reflect that.

Tara5 Oh: What about the OpenViewer project?

Yossarian Seattle: It’s a wider problem and piece of work. Well notice that openviewer is written in c# That’s because they’re limited again to using libsl (openmv). libsl recently changed it name by the way which is why i’m bracketing it.

Tara5 Oh: So it doesn’t address the underlying issue of messaging and open API’s for OpenSim.

Yossarian Seattle: Not really. But they have made the wise choice of releasing it under a free BSD license, which will enable more people to work on the project.

Tara5 Oh: Intel is working on breaking out openmv into smaller building blocks and basic types. How will this contribute to efforts to integrate OpenSim with Web 2.0?

Yossarian Seattle: Yes they recently hired John Hurliman who wrote a lot of it. i’m following what they do with interest.

Tara5 Oh: John wrote the original openmv?

Yossarian Seattle: He started the project back in 2006 .

Tara5 Oh: How will the work he is doing on openmv now help with the goal of making it easy to write new clients?

Yossarian Seattle: Well if they provide libraries in different languages that would be a good start and breaking it into chunks would allow anyone writing a client to pick and choose between the function they enable in their custom client.

However I’m not sure that’s tackling the root of the problem still.

Tara5 Oh: ‘cos the root of the problem is the messaging protocols which restrict you at the minute to C# for the client?

Yossarian Seattle: The standards need to be applied at the server end, to make it truly accessible.

Tara5 Oh: And these messaging standards need to allow for more than C# development?

Yossarian Seattle: exactly.

Tara5 Oh: well is seems like something quite doable, just time?

Yossarian Seattle: and careful thought

Yossarian Seattle: A lot of people are focusing on issues such as object portability in VWs but i’m not sure those are the ones to be concerned about right now, the games industry seems to have settled on collada as a standard for that. These VWs platforms are complex beasts and the games industry has already solved a certain amount of problems. However in terms of social interactions the VWs industry is ahead, a blend of games and social media.

Tara5 Oh: But games platforms have not solved either the web 2.0 effects or the web to world have they where things get most interesting now?

Yossarian Seattle: No and the games industry is playing catch up in that sense.

Yossarian Seattle: Little Big Planet will be the game that brings user created content into the mainstream for 3d worlds.

Yossarian Seattle: did you read this article? http://eightbar.co.uk/2008/09/10/moving-cubes-from-world-to-world/ that’s not a hack or anything in there.

That’s a full publish subscribe messaging client embedded in unity3d, realtime events across worlds.

Tara5 Oh: What do you think are the most interesting  world to web ideas that Andy’s house points too?

Yossarian Seattle: Well the fact that the communication is two way, both in and out of world and also that its real time. when something happens in Andy’s real house it happens here too.

Tara5 Oh: Yes I am very interested in the development of  the paraverse!

Yossarian Seattle: There is a personal project Peter Finn has been looking at in IBM, which is actually called Paraverse and is taking real world data including geospatial mapping information and applying it in OpenSim.

Unfortunately our interview ended here, at a very interesting point (I had to go to a panel at the Web 2.0 Expo, NYC). But  James Governor’s post/essay - a superlative ode to the paraverse - prompted by his first look at Microsoft ESP visual simulation platform produced an interesting debate on the potential of the Paraverse in the comments that includes a response by Rob. So check it out!

Metanomics host Robert Bloomfield interviewed Second Life founder and Chairman of the Board, Philip Rosedale, at the Second Life Community Convention in Tampa, Florida.  The Rosedale interview is available here (pictures above are Philip Rosedale and his avatar).

Rosedale talked about Linden Lab’s long standing commitment to open source and open protocols in one segment of this interview and Robert asked me to post a brief reaction. The full interview covers a wide range of topics and Robert has gotten responses on different parts of the interview from Wagner James Au, Christian Renaud, ‘Bettina Tizzy,’ Nic Mitham and ‘Dusan Writer,’ and Benjamin Duranske as well.

A System Without an Owner is A beautiful Thing

While Philip Rosedale’s comments may not, at first glance, appear to be saying anything new, they are in fact a very cogent summary of the important and crucial role Linden Lab has played, and continues to play, in moving virtual worlds out of their walled gardens and bringing them closer to that beautiful thing - a system without an owner.

Only a system without an owner can unleash, for virtual world technology, the kind of creative, world changing power that we have seen on the 2D web from http and html.  Anyone with even a vague idea of the history of the internet understands that it is only through openess, open source, open protocols, open standards, and open APIs, that we will get from here - the alpha days of virtual world technology, to their coming of age of age as a mainstream phenomena.

It is very much to the credit of Linden Lab that, as Rosedale says, they have never been afraid of openess: “I don’t think that the open grid will impact our revenues any more than open sourcing the client,”  he says. While there have been criticisms of licensing choices and ways Linden Lab handles contributions back to their viewer from the community, I think that overall Linden Lab has made very important and visionary moves, first to open source, and now to open protocols.

Open sourcing the viewer at a relatively early point in Second Life’s development created an enormous opportunity for the rapid development of an open source re-engineering of the server side, OpenSim.  OpenSim with the Second Life viewer is the most complete, open implementation of a persistent virtual world.  Without the head start from the open source Second Life viewer, and the connection to the thriving developer community of Second Life, the light speed progress of OpenSim would have been considerably more difficult.

Now OpenSim is getting closer to breaking free from the Second Life viewer. And, standard messaging protocols between client and server are, perhaps, the next step. Rob Smart, IBM, discussed this with me recently (see my upcoming interview with Rob Smart, “Web 2.0 Made Easy in OpenSim,” and see his post by this title for more).

As, Rob Smart, IBM, notes, “If, for example, the messages that went between your SecondLife client and the OpenSim/SecondLife servers was a standard protocol which had a bunch of libraries for a variety of languages, then you could start logging into VW servers from all kinds of clients.”  (for more see my upcoming post, “Interview with Rob Smart, IBM: Web 2.0 Made easy for OpenSim.”

Open Standards Will Emerge From Rough Consensus and Working Code

There are some that subscribe to the view that standards will arise in a virgin birth from an ivory tower, i.e., professors and captains of industry, removed from open source developer communities, will produce long documents that describe all of the fields, and every one of the messages, and all the APIs in detail prior to implementation.

But as, David Levine, IBM. Mike Mazur, 3Di, Mic Bowman, Intel, Justin Clark-Casey, and Adam Frisby, Deep Think/Sine Wave cogently argued, on the “Open Source and Interoperable Virtual Worlds” panel at the Virtual Worlds Conference and Expo in LA, this top down approach to standards, (or “vapor standards”), does not, typically, produce good results. For more on the the virtues of creating standards from “rough consensus and working code” as opposed to top down there is a full recording of the LA panel here.

Thus, in my view, Linden Lab’s current focus on open protocols, OpenGrid (for more see here), and interoperability is another key step towards the creation of open standards for virtual worlds. And Linden Lab are again leading the way in creating an environment that fosters innovation.

OpenGrid creates a testing ground where protocols can be worked out, and it enables the kind of heterogeneous ecosystem to develop that can nurture the creation of standards. I  agree with Rosedale when he says content makers will have an important role in driving interoperability and standards. The creation of standards is certainly a social as well as technical process. And as Rosedale notes content creators will have compelling reasons to move their content around in an open metaverse.

David Levine’s (IBM), described in detail in LA (again see recording here) the importance of interoperability and parallel innovation for the creation of standards. OpenSim has already produced an extraordinary amount of innovation, realXtend, Tribal Media and more. Also see my interview with Mic Bowman, Intel, for more on the role of open source/open standards in fostering innovation and in moving virtual worlds into “the fabric of everday computing.”

While Linden Lab only have a small team working on OpenGrid, it is a vital one.  And, with MarkLentczner (Zero Linden in Second Life) leading the Architectual Working Group for Linden Lab, and a collaboration with IBM led by David Levine (Zha Ewry in Second Life) driving the interoperability effort, plus the OpenGrid project, Linden lab has a high powered, agile, lean, machine working for an open future.

So with no more ado, here it is: Robert Bloomfield’s interview with Philip Rosedale!

Rosedale on Open Sim:  Pandora’s Box Was Already Open

Introduction from Robert Bloomfield

Naturally, a major topic of my interview with Philip Rosedale was on the implications of OpenSim and the Open Grid project, which both involve creating open source server-side implementations of virtual worlds that can replicate Second Life’s funcationality.  As a relative newcomer to this corner of the tech industry, I still find myself asking what a company would essentially create its own competitor.  Here is what Philip had to say; I have asked Tish Shute of UgoTrade to comment, as one of the people who has covered the OpenSim/OpenGrid movement with more detail and passion than just about anyone.

PHILIP ROSEDALE: I just really hold true to the strategic belief that there’s going to be a tremendous amount of consolidation and interconnection between these worlds because the content development process is so challenging that the content developers are going to push us all together. They’re going to say, “Give me a file format. Give me an interchange format. And let me move that chair from this grid to that grid. I’ve got to be able to do that because I’ve got a customer here who wants to buy it.” And so I think that that consolidation is going to happen, and it’s going to happen earlier than people would have thought.

ROBERT BLOOMFIELD:  And this is looking at the success, the energy around OpenSim, open grid.

PHILIP ROSEDALE:  The energy, yeah. I think, at this point, we’ve got an appropriate level of energy – I think that’s exactly the right word – around exploring how quickly we can generalize all this stuff and open and interconnect everything together. I really think that’s going to continue.

ROBERT BLOOMFIELD:  [D]o you feel like you might have opened Pandora’s box and that it’s not really under your control now?

PHILIP ROSEDALE:  I think that Second Life has, in many ways, not been under our control from the beginning and that it’s been a basic operating assumption that to create the kind of incredible place and business opportunity, and social opportunity more broadly, that Second Life would require a certain lack of control. And that was true with the content from day one.

So for us, oh, we open-sourced the client a while ago, and now we’re trying to do the same thing with respect to operating standards to interconnect grids. This is a pretty logical progression, using worlds that we’re pretty familiar with. I mean we’ve always felt that, if you have a compelling use proposition, which certainly Second Life does, in other words, if there’s real utility, real fun or real business or real whatever in what people are doing, then there should be a way, as a company, to be open, global and still make money on an hour-to-hour or a user-to-user basis or whatever on what we’re doing. And the economic aspects of the business have been fantastic from the very early days, and we don’t really even worry about them.

Our ability as a company to find a way to make a reasonable amount of money per hour that people spend in Second Life, it’s really never been that much of a problem. It’s actually been fascinating as we’ve changed pricing and as we’ve changed the ways that we make money. Introducing new ways of making money –  like selling currency on the LindeX – it’s been amazing how stable our revenues have been as a function of usage hours. It’s one of the things that we sometimes marvel at. It’s almost an emergent effect, if you will, that the company’s business, its operating revenues are really very stable.

ROBERT BLOOMFIELD:  Even though they’re coming from different streams.

PHILIP ROSEDALE:  Even though they’re coming from different streams. And sometimes the requirements of the platform and decisions that we make will really substantially change the nature of those streams, but when you put them all together and you divide them by the number of usage hours, it’s like a constant. It’s almost a magic number. And it’s a magic number that allows us to be profitable, and therefore, is certainly adequate to make a business in the future. I don’t think that continuing to open Second Life up as we have been is going to impact that. Again, I just think there are so many opportunities to make money that we shouldn’t have to worry about that too much in the company. And, again, I think that’s a lot like the early internet. I mean if you step back and look holistically at the internet – you look at PayPal, the payment systems, auction systems, transaction systems, posting, naming – you look at all the businesses that comprise the internet, well, those are all the kinds of businesses that we as a company can be in, in this emerging market. There’s no business that’s denied us. We are in the hosting business. We can continue to be in the hosting business long term, putting servers up and providing access to them.

We can certainly be in the naming business. We’re in the currency and transaction support business. It’s funny, it’s something that’s often discussed. We worry much more about improving the scalability, stability and the usability of the system: reducing that initial user experience, reducing the time associated with it, making it easier. That’s got to be the lever that drives more growth in the overall industry, more revenues for us. So it’s really all we worry about. But I don’t think that the open grid will impact our revenues any more than open sourcing the client did.

Tim O’Reilly, founder of O’Reilly Media addressed the audience of the Web 2.0 Expo with a series of challenging questions. I felt happy that so many people I know are already answering this call “to do something worthy” with Web 2.0 and “to make technology that matters.”  However, many of these people were not at the Web 2.0 Expo.  This is, in part, because as O’Reilly pointed out:

if you look at the focus of a lot of what you call ‘Web 2.0,’ the relentless focus on advertising-based consumer models, lightweight applications, we may be living in somewhat of a bubble, and I’m not talking about an investment bubble. (It’s) a reality bubble.”

But as I explored the conference and expo, I did find friends, old and new, dedicated to figuring out how to use Web 2.0 to make a better world.

Caroline McCarthy has an excellent post, on CNET news on the message of Tim O’Reilly’s keynote address.

If you have read Ugotrade before you already know the threads I have been following re the potential for virtual worlds for positive global development and to reduce the carbon footprint of business, so some of McCarthy’s comments caught my attention:

There’s an inherent irony in what O’Reilly said, given the fact that massive conferences like the Web 2.0 Expo are packed with the trendspeak and hype that birthed SuperPoke-like entertainment, and certainly aren’t helping the environment by distributing tons of press kits and swag–not to mention flying in hundreds of attendees in a massive spurt of carbon emissions.

To be fair, O’Reilly Media has been printing fewer event programs and encouraging conference goers to recycle, and it has used carpeting made of post-consumer material.

There is clearly a lot that needs to change, and perhaps the tech industry trend of large-scale conferences is part of it. We’ll see whether Silicon Valley’s leaders and moguls are willing to do what they think is right, rather than what they think is profitable.

But, as Tim O’Reilly pointed out, the huge problems we face today create an enormous amount of opportunity for us to find creative solutions.

“We are going to figure out how to make a better world using the power of the web.” O’Reilly

Virtual World technology will soon, play a major role in re-imagining these tech industry large-scale conferences. There is an talented and dedicated community of open source developers working hard to take this nascent area of Web 2.0 technology mainstream through open source, open standards, and open API’s. I am so proud to be part of this global community!

Virtual Worlds were only a very small part of the Web 2.0 Expo. W. James Au’s “The Post-Hype State of Virtual World Marketing: What Works, What Doesn’t and Why” was the only panel I noticed focusing on Virtual Worlds in any of the main tracks. This reflects the relative lack of integration of virtual worlds into Web 2.0.

One of my passions is to make this isolation of virtual world technology from Web 2.0 a thing of the past (see my upcoming post on Rob Smart’s, IBM, integration of JSON support into OpenSim - which is a vital step towards Web 2.0 made easy for OpenSim).

But, as W. James Au pointed out very eloquently, this notion of isolation is really not accurate, even now. For example, Second Life communities interact in myriad and powerful ways with other social media communities on the web despite the current  lack of common protocols that have kept immersive virtual worlds architecturally cut off from some of the networking effects of Web 2.0.

But, for all of us living here in the US, O’Reilly’s most important message was simple and fundamental. So let’s reblog, retweet, plurk, friendfeed, facebook, send it out on notecards in SL, make machinima, and spread the word in every way available to us.

“Bad politicians are elected by good people who don’t vote.”

“There is no reason in 2008 to do shit you hate, ‘cos you can lose just as much money being happy as hell.”

Quote and pic above from Gary Vaynerchuk’s keynote, Web 2.0 Expo, 2008 (also see Execute on Being you).

“Do something you love,” Vaynerchuk

I personally can’t wait until the potent mix of real time interaction in immersive spaces is combined with the networking effects of Web 2.0. Not just because this will unleash an awesome new wave of innovation and creativity but the early adopters I have met in immersive virtual worlds, and the phenom developers in the rapidly growing open source communities of this emerging technology, have passion, do stuff they love, and do stuff that is worthy, w00t!

And further: “Do Something Worthy,” O’Reilly

While speakers and exhibitors from virtual worlds were scant in the main hall and panel tracks, Second Life had a strong showing in the  “Do Something You Love,” “Do something that need’s to be done” zone of the Not For profit strip. “Create more value than you capture” (from O’Reilly’s keynote) is the natural heart of their mission.

Below is the awesome Evonne Heyning ( InKenzo in Second Life) of Amoration.

What is Amoration?
AMO:  The root of love
~ation:  The state of being, practice and study
Amoration:  living in love, a practice of open engagement
Our Mission:  To Create a Culture of Conscious Compassion

Evonne addressed the problem of the Not For Profit’s being in an out of the way strip in the Expo hall with some very tasty peanut brittle.

In Contrast, the MS Surface crew, in a prime location, playing with super shiny things, did not have to do much to keep a crowd at their table!

I IMed my friend Kyle Gomboy (G2 Proto in SL) from the Microsoft Development Community in Second Life and in OpenSim to ask him if the Microsoft  .net, technet, and c#  developers in OpenSim had any plans to integrate Surface with OpenSim.  I saw the Surface/Virtual Earth integration  and realized Surface with OpenSim would be hotness for a small company looking to develop a vertical for hospitality, medicine, or education. At between 12 to 15K with SDK and two days training, Surface is priced in a range a small company can probably afford.

G2 also came up with a thought that would bring shiny together with worthy when he mentioned to me how great it would be to see Surface in every public school library in the country.

See Rik Riel’s blog for a nice video of the MS Surface demo in the expo hall.

“The Making of Second Life,” W. James Au’s book signing

From left to right, Rik Rik Panganiban from Global Kids (Rik Riel in SL), Joyce Bettencourt, Rhiannon Chatnoir, in SL, W. James Au, (Hamlet Au in SL),  Evonne Heyning ( InKenzo in Second Life), Jennifer Schlegel (Schlink Lardner in SL).

And further more: “Make technologies that matter,” O’Reilly

One of the highlights for me of w2e was getting an inside look at the Interop NOC and meeting Bill “WEJ” Jensen the Troubleshooting Lead of the InteropNETteam (WEJ center sitting at the Mac).

The Interop NOC is a “real” world work of art  - “the largest temporary network in the world” where voluteers have come together with industry leaders to take on the ultimate network challenge - “creating a completely interoperable network using the industry’s most cuting edge technology.”

If you have been reading Ugotrade you will know I have been following the work of Michael Osias, IBM,  (Illuminous Beltran in SL) who has been creating virtual network operation centers (VNOCs) in OpenSim (for more see  here).  I am looking forward to introducing “WEJ” to Michael’s work which I believe foreshadows a new era for software - along the lines Gelertner first envisioned in 1992. Michael follows the Gelertner vision pretty closely.

Gelertner talks about software as an embodied information machine. And, as virtual worlds come of age so will this notion of software as 3d info machines that we can walk around, tinker with, and hang out in with other avatars and agents in real time.

Mirror Worlds will transform the meaning of “computer.” Our dominant metaphor since 1950 or thereabouts, “the electronic brain,” will go by the boards. Instead people will talk about crystal balls, telescopes, stained glass windows, wine, poetry, or whatever - things that make you see vividly.

Software today offers assistance to the specialist (in everybody) not to the citizen. The mere citizen deals with the increasingly perilous complexity of his government, business, transportation, health, school, university and legal systems unaided. Mirror Worlds represent one attempt to change this state of affairs (Mirror Worlds, David Gelertner 1992).

More on VNOCs in an upcoming post.