The chapter addresses the impact of Web 2.0 on higher education institutions. Using Christensen’s theory of disruptive innovations, the authors ask whether Web 2.0 is a sustaining innovation that is creating incremental changes in higher education practices as older technologies have, or if Web 2.0 is a disruptive innovation that is slowly easing its way to meet the needs of specialized audiences but ultimately may drive out the conventional education model or turn it on its head. To tackle this question, the authors briefly review the current state of Web 2.0 in higher education, discuss related issues and controversies, and then focus on the impact of Web 2.0 on human, social, and organizational aspects of higher education institutions.