This paper describes different aspects of teaching distributed software development, regarding the types of project customers: industry and academia. These approaches enable students to be more engaged in real-world situations, by having customers from the industry, local or distributed customers in universities, distributed customers in software engineering contests or being involved in an ongoing project, thus simulating the company merging. The methods we describe are used in a distributed project-oriented course, which is jointly carried out by two universities from Sweden and Croatia. The paper presents our experiences of such projects being done during the course, the differences in each approach, issues observed and ways to solve them, in order to create a more engaging education for better-prepared engineers of tomorrow.