IBM is looking to extract real-world benefits from the virtual world that's called Second Life. Big Blue's philosophy is that now is the time to experiment and get the formula right, before having a presence on Second Life and similar cyber-worlds becomes essential.

"I actually believe this is the next evolution of the Internet," said Michael Rowe, whose job title at IBM is 3-D Internet champion. Rowe works in the company's digital convergence division in Research Triangle Park, where IBM employs 11,000 staffers.

Second Life, found at secondlife.com, is the most popular of a handful of computer-generated worlds where you can invent a virtual life for yourself.

You create an alter ego -- called an avatar -- that walks, flies or teleports around a 3-D environment that has the look of a video game. In the virtual world, you can buy or lease real estate and open virtual businesses, such as selling clothing that fellow avatars can wear. The world even has its own currency, Linden dollars, which get their name from the company that created Second Life, Linden Lab of San Francisco.

"You can think of this as a 3-D version of a social networking site, where you can hang out with your friends, go to a concert, go to a club or just chat," said Glenn Fisher, director of developer programs at Linden.

Second Life is growing fast and today has 7.2 million "residents," up from 1 million in the fall. Of those, 1.6 million have logged in within the past 60 days. Access to the virtual world is free, but if you want to own "land," you must become a premium member, at prices that start at $9.95 per month.

The popularity has led a host of companies to establish a presence on Second Life, including Nissan, Intel and Reebok. They are creating virtual showrooms and places where customers can hang out and talk to company representatives.

They are also working with internal communication by, for example, holding internal staff meetings for employees in different locations. For security reasons, these virtual meetings also incorporate telephone conferencing.

Some companies are selling real-world goods on Second Life. Reebok has a virtual store where you can create a customized sneaker for your avatar -- and for yourself. But most companies aren't selling their wares directly because the number of potential buyers is too small, at least for now.

Forrester research analyst Brian Haven contends that the number of "resident" logins that Second Life bandies about -- 1.6 million over the past 60 days -- overstates the site's popularity, because it includes users who don't return after the first few logins.

"Companies expecting an immediate ROI [return on investment} should wait at least a year" before jumping into Second Life, Haven advised in a recent report.

Using Second Life

Companies that have made the leap aren't expecting an immediate payoff.

Christian Renaud, who works on virtual worlds for networking equipment maker Cisco Systems in San Jose, likens having a presence on Second Life to participating in a trade show. It might not lead to sales today, but it can lay the groundwork.

A few examples of how companies are using Second Life:

* The Weather Channel has an unusual brand tie-in: a spot where avatars can ski or ride mountain bikes.

* IBM has created virtual showrooms for two of its customers, Sears and Circuit City, designed to take advantage of Second Life's technology. The Circuit City showroom lets avatars seated on a couch in front of a wide-screen TV look at different screen sizes and vary the distance between the couch and television. That can help customers visualize which screen size might work for them, based on the configuration of their TV rooms.

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