Next-generation sequencing is poised to unleash dramatic changes in every area of molecular biology. In the past few years, chromatin immunoprecipitation (ChIP) on tiled microarrays (ChIP-chip) has been an important tool for genome-wide mapping of DNA-binding proteins or histone modifications. Now, ChIP followed by direct sequencing of DNA fragments (ChIP-seq) offers superior data with less noise and higher resolution and is likely to replace ChIP-chip in the near future. We will describe advantages of this new technology and outline some of the issues in dealing with the data. ChIP-seq generates considerably larger quantities of data and the most challenging aspect for investigators will be computational and statistical analysis necessary to uncover biological insights hidden in the data.