This is the second semester that I have worked in this virtual arrangement. Virtual offices evolved from virtual teams. Virtual teams generally are cross functional groups put together to work on a one time project where it would too expensive to bring them all together. Chrysler used a virtual team to build their latest minivan. Engineers talked to marketers who talked to the finance guys and they were all able to maintain their current locations and job responsibilities.
Virtual offices work much the same way.
Take my office for example, it would cost to much to bring all the authors of the textbook together. Experts in the field of lifeguarding have to spread themselves all around the world to make a living. After all how many expert lifeguards could one beach or pool need. My other project is the same way, we want to bring attention to the problem but we cannot devote the resources needed to build a full time office. So we went the virtual route and it seems to work well.