1) Carbon is WSO2's modular middleware platform built on OSGi components. It allows configuring the middleware to fit the architecture by installing only needed components. 2) Carbon provides a consistent foundation for all WSO2 middleware products. It handles common functions like security, clustering, and provisioning in a standardized way. 3) The latest Carbon 3.0 release improves the component manager, provisioning system, and adds new features like app deployment and cloud support. It delivers a more flexible and cloud-enabled modular middleware platform.