With advanced computer technologies offering opportunities for greater interactivity between teacher and student from the desktop, public and private universities are moving beyond the rural connection and looking at distance education as a more efficient and cost effective means of educating a professional population in need of continuous training to remain competent and competitive in a rapidly evolving global market. Courses and programs of study provided through the Internet have brought a new dimension to virtual education and raised philosophical and practical issues unique to the method of delivery, interaction and administration of online instruction. Advancing technologies are changing current practices in distance education and expanding its possibilities for the future. This article reviews some basic tenets for educational practice as it considers current trends and possible future directions for higher education. The Western Governor's University, a consortium of private and state supported institutions, is examined along with issues raised by the emergence of business-oriented university systems. Design and instructional issues for developing virtual education are also considered.