The document discusses the challenges of distributed agile teams where team members are located in different locations. The three main challenges are: 1) Dysfunctional team structures where different roles like developers, testers, analysts are separated rather than being cross-functional. 2) Communication and interaction barriers between locations that make it difficult to build social and interactive teams. 3) A fragmented and short-term approach instead of creating linkages and focusing on organizational learning and value. The document argues that distributed agile is not an oxymoron if these challenges are addressed by blurring boundaries, reducing hierarchy, and focusing on constant change and learning.