Sun Microsystems yesterday staked a claim to becoming the first Fortune 500 firm to hold an 'in-world' conference in online virtual world Second Life. 

Sun chief researcher John Gage hosted the conference at the opening of the company's new virtual Sun Pavilion inside the Second Life world.

Gage, appearing in avatar form, discussed the purpose of Sun's foray into Second Life as an opportunity for experimentation with new forms of communication, collaboration and economic activity in the virtual world.

Attendees at the virtual event were able to tour the Sun Pavilion, which includes an outdoor theatre, meeting spaces and kiosks that exhibit videos highlighting recent Sun innovations, events and customer projects.

"Second Life is creating new possibilities for communication, sharing and community building, all principles which have guided Sun since its founding," said Gage. "I see virtual worlds like this as the next evolution of 'The Network is The Computer.'

"Second Life is a community built entirely on participation and, while this is still an experiment for us, we see the online world's unlimited potential for collaboration on everything from social issues to Java technology development."

Second Life is a 3D online world with a population of more than 700,000 'residents' based in 100 countries. The residents create and build the world, including homes, vehicles, nightclubs, stores, landscapes, clothing and games.