The purpose of the study was to analyze the experience provided by e-learning in a higher education setting in Kazakhstan as viewed by university administrators and graduate school e-learners. Surveys revealed that the e-learners expressed a high interest in study at remote universities. From the standpoint of the administrators, the main challenges of distance education development are the considerable implementation costs, a lack of technical support, the need to train qualified teachers, and a need for the full-fledged development of new courses. Clarifying the implication of these challenges can help administrators develop e-learning classes in universities nationwide. The research results can be applied towards identifying the resources needed for further developing e-learning initiatives for higher education, with the goal of giving universities a competitive advantage.