Genomic investigations into the diversity of environmental microbes are leading to insights into ecological dynamics, the evolution of new forms of biological systems, and the discovery of new functions that might be exploited for biotechnological and biomedical purposes. It is now clear that an understanding of the community structure, function and evolution of bacteria in their natural environments is required to meet the promise of microbial biotechnology. To meet these new challenges, microbiologists are applying the tools of genomics and related highthroughput technologies to both cultured microbes and environmental samples. This work will lead to new views on ecosystems and biological function together with the biotechnology enabled by this science.