Technical advances such as the development of molecular cloning, Sanger sequencing, PCR and oligonucleotide microarrays are key to our current capacity to sequence, annotate and study complete organismal genomes. Recent years have seen the development of a variety of so-called 'next-generation' sequencing platforms, with several others anticipated to become available shortly. The previously unimaginable scale and economy of these methods, coupled with their enthusiastic uptake by the scientific community and the potential for further improvements in accuracy and read length, suggest that these technologies are destined to make a huge and ongoing impact upon genomic and post-genomic biology. However, like the analysis of microarray data and the assembly and annotation of complete genome sequences from conventional sequencing data, the management and analysis of next-generation sequencing data requires (and indeed has already driven) the development of informatics tools able to assemble, map, and interpret huge quantities of relatively or extremely short nucleotide sequence data. Here we provide a broad overview of bioinformatics approaches that have been introduced for several genomics and functional genomics applications of next-generation sequencing.