The one-sided love affair…

I keep going back over the transcript of last Friday’s in-world presentation. In my first piece on it, I tried to give a reaction to the gist of the presentation rather than a review, so a part of me keeps thinking I’ve sold some of it short.

To be fair to Philip, he does make some valid points. It’s just unfortunate that these are outweighed by the feeling of having, “been there, heard that,” and the doubt that there is sufficient recognition within LL that they need to change their culture if anything is really going to change for the better.

There is one aspect of the presentation I did find interesting. When it comes down to it, Rosedale’s focus is very clearly locked on to the idea of SL becoming a place for business enterprise – as is evident from the latter half of the presentation. Not so much the business you and I might conduct – although he does give more than a tip of the hat towards this and the work of content creators in SL – no, he’s referring to “big” business.

Again, it’s a familiar meme. Throughout the Kingdon era, a good part of the focus at LL was the “business community”: we had the development of the (former) SL Works website into the microsites, the drive to expose how SL is “transforming” business and, of course the behind-the-firewall SL Enterprise product. No surprises there: as I’ve stated elsewhere, Kingdon may have had some ideas of his own for SL, but by-and-large it is safe to say that most of the direction LL took under his tenure was at the behest of the Board itself.

What is interesting is the frame-work of Philip’s comments on business (in the corporate sense). First off, he makes it clear that sorting out lag is a priority because it is seen to be hurting SL where bringing in business is concerned. He also implies that LL doesn’t actually know how well the SLE “behind the firewall” product is doing: An example that speaks to a broad point, SL Enterprise, we don’t know who is using SL.  We think it is used by educators, those casual users, by people at work. Really? you mean no-one in LL is tracking sales? Granted, this may not reveal who is actually taking the software out of the box and putting it to use on a server…but tracking sales would give an indication of the markets for SLE..if any. Is this comment in fact a coded, “SLE isn’t selling like we thought it would”?

However, what is most interesting in Philip’s comments on the involvement of big business in SL is his statement that, In SLE, we’re not trying to move away from use at work, but we aren’t going to work on deploy behind fire wall. We will work to support them on the main grid.

“We will work to support them in the main grid”. It’s as if Philip is hoping for a repeat of the “glory days” of 2006, when business from all markets  – technology, finance, footwear, automotive, television, and so forth – poured into SL.

But didn’t actually stay.

Worse, when reading these words, I couldn’t help but remember Justin Bovington’s (of Rivers Run Red a (former?) strategic partner with LL) outright hostility towards “ordinary” users, and his cries that swathes of the Mainland should be turned into “no go” areas for the likes of most of us, reserved purely for the “serious” or “business” user.

Now, to be sure, for SL to do more than subsist, it needs to thrive. Getting big business and the likes to invest is potentially one of the major ways that LL can hope to ensure it thrives. This much isn’t rocket science; the dots would appear to be there waiting to be joined up.  But again, please note the key words in that statement: “potentially” and “appear”.

Why are they key? Well, simply because there is a very big question mark as to whether the business community need Second Life as much as Linden Lab believes to be the case.

So far, we’ve seen two attempts as trying to lure business in: opening the doors in 2006 and riding on a wave of media popularity, and the launching of Second Life Enterprise. Both have been far from stellar. Between both we had the likes of Bovington and Amanda Linden pushing a “let’s get real for business” theme that came across as – frankly – openly hostile towards the rest of us.

But…aside from the early takers like Toyota, IBM, Nike, NBC, etc., no-one has really found am ongoing business-oriented use for SL; least of all Linden Lab. Oh sure, there was the flurry of activity around the US Navy’s project and there are various small-scale projects and case studies in the “SL Work” microsites; there has been talk of the US Army using (and note this, given Philip’s statement) SLE for “war game modelling” and the like; and even some US Federal Agencies have sniffed at SL. But the fact remains that these are niche markets with limited scope; and if SLE is going to be shelved, it is really hard to see them going anywhere on a scale that actually matters in terms of revenue development.

Certainly, the Grand Vision of SL being at the “centre” of all things corporate, “revolutionising” communication, collaboration, the way meetings are “held” and so on and so forth that have been dreamily blogged about on the official website (and note the central position of Viewer 2 – those still asking “why” Philip won’t “drop” it therein have their answer) remains little more than a gleam in LL’s own eye.

Of course, LL-ites will point out that SLE is only “beta”, and therefore it shouldn’t be used to judge SL’s “potential” as a “business platform”; similarly they’ll say that the reason business came and went in some six short months back in 2006 was because “we” (i.e. LL) didn’t “understand” the potential or what was happening.

Well, yes. SLE *is* only “beta”, and yes, to some degree, the influx of 06 may have been hard to foresee. BUT – and here’s the rub – none of these excuses matter.  The simple fact is that, outside of niche activities, as stated, Second Life simply isn’t ready for big business to pay anything more than a cursory interest in it; there is simply nothing here that is compelling for big business to invest time, effort and money in SL on an ongoing basis.

And this is where Philip’s assertion that lag is somehow a critical factor in preventing business leaping onto the SL bandwagon raises more than just one eyebrow. Compared to issues such as data security & integrity, confidentiality and a host of other business-critical issues that would need addressing before business dipped anything more than a big toe into the water of Second Life, “fixing” lag would seem to be something of a trivial item upon which to focus. Let’s be honest here, who didn’t read the aforementioned blog post (March 2010) lauding SL as the Next Big Corporate Thing  – or indeed Amanda Linden’s “Open Letter to Your Boss” (remember that?) without having something of a laugh and the rose-tinted manner in which the Grid and SL’s capabilities were presented in both?

Beyond this, there is also the question that if LL is serious about reaching beyond niche markets, whether driving corporations towards the main Grid is really the right way to go. OK – so SLE might not be selling well right now – but surely, if it is packaged, presented and promoted properly, it stands to be a much better product for LL than simply leasing server space. A single sale of SLE represents eleven years of income from a single sim, or the equivalent income from 9.5 sims over the course of 12 months. The financial math alone isn’t hard to work out. Plus, SLE checks the boxes companies are going to want to see checked: it operates behind their firewall, it is completely under the control of their own IT bods, it doesn’t have strangers flitting around, it doesn’t suffer from questions of data integrity or communications issues as much as the Grid does, and so on.

But again, all this pre-supposes big business actually needs SL or can, indeed, find a practical use for it. To date, it is fair to say the love affair has been entirely one-sided. We’ve yet to see a single runaway success for SL / LL where the corporate world is concerned. And frankly, it’s really hard to imagine that we will if everything is to be pushed back into the Grid itself.

3 thoughts on “The one-sided love affair…

  1. In my experience, corporations — big or small, it doesn’t matter — are well gone from the “media splash” days of SL. There are several reasons for that. One is that their marketeers and PR agencies are still stuck on the old paradigm of mass media: it doesn’t matter how many people actually buy your product, so long as an ad for it reaches millions — that’s why we still get TV ads, even though their efficacy is as low as spam email.

    By contrast, PR agencies looking for niche markets to advertise (where every viewer/reader is a potential customer) is still something far less widespread than we think. Thus, between putting an ad on Facebook which might be seen by half a billion users, none of which will really click on the link, compared to doing something in SL that might just be watched by a few thousands (all of them interested in the product/service), is still the most widespread mentality. This won’t change easily. Most marketeers and ad specialists are too tightly bound to mass marketing, and see having a presence in specialised media as a “niche”, which they will commit little money to.

    So we have to drop the pretence that companies will come to SL for doing virtual presences there. It simply doesn’t pay off, and has little interest for them anyway.

    Instead, they’re all doing internal projects. Yes, all 1400 or so companies currently in SL don’t make a fuss about what they’re doing. Most are engaged in mid-to-long-term projects which most residents will never see. Although there are exceptions, most people have, at most, an attention span of 2-3 years in SL, and then leave. These days, most of the corporate projects take longer than that. So even when people get excited that Company X announced they’ll be doing something new in SL, they will very likely leave well before the project is completed. And in truth most companies don’t even care to announce to the world-at-large what they’re up to. They simply do what they want to do — internal meetings and simulations, for example — but never mention it at all.

    The external perception is that they’re not doing anything at all. Well, yes — they’re not doing anything for the community. But that hardly means they have abandoned SL completely — rather the contrary, they’re actually doing some fascinating projects, but… we never get to know what they’re doing.

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    1. PR – precisely – which is why SL won’t succeed for a goodly while yet, despite the hopes within LL that all the mucking about with Search will raise the visibility of SL to the outside world and thus make it someone more credible and the inclusion of the blatant advertising tab in Viewer 2’s sidebar. Compared to the sheer power and reach of the web in terms of addressing a world-wide audience, SL is less than a drop in the ocean.

      Yet LL still persist, rather than addressing their primary market – those of us using and enamoured of their product.

      As to the idea that there is a potential for advertising in SL, I’d add a few additional points as to why it’s going to be hard to make this happen (and that’s even assuming we want it to happen in-world. Real life is overflowing with advertising billboards enough as it is, without the mainland being strewn with media-on-prim boards winking and blinking at us at every turn).

      First off, to the general populace (who have heard of it) SL is frequently perceived as a place where people go “to have teh seccs” on their computers. Sure sex sells, and it has done SL an almighty power of good in so many ways whether people want to admit it or not – not only in terms of bringing the curious in, but also in terms of economic turnover (as Stroker will attest). This is great for the likes of Durex (condom sellers for those not blessed to live in the UK) or Anne Summers (“lingerie” chain store), but anyone else?

      Secondly, beyond the view that SL is far to niche as a market, lies the viewpoint many in corporate business (assuming they have even heard of SL) doubtless hold towards SL users. It’s the very same attitude espoused by Mitch Kapor just two short years ago: that SL is used by those outside the social norm. The inept. The basement / attic dwellers. The precise demographic most companies don’t want to reach out to.

      1400 companies “working” in SL? Really? Linden Lab themselves only ascribe some 35 large corporations / organisations as working in SL. Of those, the likes of the US Navy appear to have pulled back into an SLE-type environment with their presence on the grid largely static. But I’ll give you the benefit of the doubt on the numbers. And they may well be doing “fascinating” at. They may well be doing many “fascinating” projects – and kudos to you if you have the inside track there to be able to reveal this fact – but again, slipping comments like this out doesn’t do anything to negate the view that LL are side participating in a one-sided love affair. Why? Because of your own qualifying statement: “they’re not doing anything for the community“.

      No – and that’s the problem. LL is in love with the idea of business being “in” SL – be it with big presences on the Mainland (and leave us not forget, this is precisely what Philip was referring to in his presentation), or be it behind the “locked doors” of private sims. But, to date, these same companies have contributed little or nothing to “the community” – the the survival of Second Life, be it through innovation (say the development of a Viewer that meets the needs of the fully range of users from Corporate down to casual), contribution, stability or longevity. Of course, they don’t have to: but chasing them for the sake of chasing them, in the vain hope that something may suddenly spring up once again, a-la 2006, is something LL needs to stop doing, because all it is doing is sucking much-needed resources away from more pressing matter and/or causing LL to fiddle around with elements of SL to the detriment of the Grid as a whole.

      Note I’m not saying they should stop courting corporate users per se – I strongly believe that they may well be a place for SL in business, providing it is properly defined, understand and collaborated upon. But this should not be the function of LL as a whole: they need a small, qualified team working on this issue (which is what I thought Amanda and others over at SL Work were supposed to be doing) – and ideally, they need their own corporate-geared grid which can be operated, say, as an extension of the SLE product.

      That way, LL can cultivate the business environment over the time that it needs. Better yet, they can actually themselves start to define more realistic ways in which SL can be used as a corporate tool. I say they because, just as they fail to grok their user base as a whole, LL don’t really grok the business world, despite the luminary names on the Board.

      In the meantime, LL really should get on with what remains their best course of action – and source of revenue for the time being – and that’s engaging fully and honestly with the user base and working with us to ensure that SL once again becomes compelling enough not only to bring new users into the community – but to retain them. In this, I do actually applaud elements of Philip’s presentation in principle. He does, in fairness, raise some worthwhile points.

      The fear remains, however, that LL are going to keep the “bean counter” mentality where user numbers are concerned, and continue to focus on meaningless figures such as “actives” logging-in to SL, rather than helping to generate overall retention of users.

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  2. SL is hamstrung by many groups who have different visions for this world. Is it for business? Is it for everyday people looking for a bit of exploration? Is it for the elite with mega computing power for fancy graphics?

    Then there is the Love Machine voting policy which means no employee in his/her right mind would want to work on a project that doesn’t have the wow factor. People working on the plumbing are not going to get the votes that people working on the decoration will get.

    Why Philip Linden is so set on getting business companies into the world, I don’t know. Especially since that sector is not interested at all in SL.

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