1. The human microbiome is complex and diverse, consisting of many bacterial taxa that play important roles in human health and disease. 2. Lateral gene transfer is an important process that allows for innovation and functional changes in the microbiome over time and in response to environmental conditions. 3. While taxonomic diversity does not always predict functional diversity, analysis of microbial genomes and gene functions is helping researchers better understand the metabolic capabilities and ecological roles of microbiome communities.