OSGi facilitates creating and managing modular Java components (called bundles) that can be deployed in a container. As a developer, you use the OSGi specification and tools to create one or more bundles. OSGi defines the lifecycle for these bundles. It also hosts them and supports their interactions in a container. You can think of an OSGi container as roughly analogous to a JVM, with additional powers. Likewise, think of bundles as Java applications with unique abilities. Bundles run inside the OSGi container as client and server components.
