Higher education is facing new challenges with the emergence of the Internet and other information and communication technologies. The call for the transformation of higher education is imperative. This article describes the transformation of higher education and its impact on nursing education. Nursing education, considered by many a pioneer in the use of educational technologies, still faces 3 major challenges. The first challenge is incorporation of the Institute of Medicine's recommendation of 5 core competencies for all health professionals. The second challenge focuses on the preparation of nurses to practice in informatics-intensive healthcare environments. The last challenge is the use of emerging technologies, such as Web 2.0 tools, that will help to bridge the gap between the next generation and faculty in nursing schools. Nurse educators need to understand and use the power of technologies to prepare the next generation of nurses.