Digital power modules provide the benefits of both digital power and power modules, and support the growing industry trend toward high-efficiency power conversion because of their flexibility, high integration and high reliability. This paper explores the many benefits for system designers working with digital power modules, and shows how digital power modules can simplify the design of a high performance compact power supply. The evolution of digital power technology is also discussed, with a focus on new digital control schemes that achieve superior transient performance with less output caps.