Part of the confusion related to COM technology comes from the fact that Microsoft used different names for it in the early years for marketing reasons. Everything began with Object Linking and Embedding (OLE, for short), which was an extension of the DDE (Dynamic Data Exchange) model. Using the Clipboard allows you to copy raw data, and using DDE allows you to connect parts of two documents. OLE lets you copy data from a server application to a client application, along with information regarding the server or a reference to information stored in the Windows Registry. The raw data might be copied along with the link (object embedding) or kept in the original file (object linking). OLE documents are now called active documents.
Microsoft updated OLE to OLE 2 re-implementing it not to be just an extension to DDE and began adding new features, such as OLE Automation and OLE Controls. The next step was to build the Windows 95 shell using OLE technology and interfaces and then to rename the OLE Controls (previously known also as OCX) as ActiveX controls, changing the specification to allow for lightweight controls suitable for distribution over the Internet. For a while, Microsoft promoted ActiveX controls as suitable for the Internet, but the idea was never fully accepted by the development community—certainly not as "suitable" for Internet development.
As this technology was extended and became increasingly important to the Windows platform, Microsoft changed the name back to OLE, and then to COM, and finally to COM+ for Windows 2000. These changes in naming were only partially related to technological changes and were driven to a large extent by marketing purposes.
What, then, is COM? Basically, the Component Object Model is a technology that defines a standard way for a client module and a server module to communicate through a specific interface. Here, module indicates an application or a library (a DLL); the two modules may execute on the same computer or on different machines connected via a network. Many interfaces are possible, depending on the role of the client and server, and you can add new interfaces for specific purposes. These interfaces are implemented by server objects. A server object usually implements more than one interface, and all the server objects have a few common capabilities, because they must all implement the IUnknown interface (which corresponds to the Delphi-specific IInterface I introduced in Chapter 2, "The Delphi Programming Language").
The good news is that Delphi is fully compliant with COM. When Delphi 3 came out its COM implementation was much easier and integrated in the language than than C++ or other languages were at that time, up to the point that even programmers on the Windows R&D team commented "we should have done COM the way Delphi does COM." This simplicity mainly derives from the incorporation of interface types into the Delphi language. (Interfaces are also used in a similar way to integrate Java with COM on the Windows platform.)
As I've mentioned, the purpose of COM interfaces is to communicate between software modules, which can be executable files or DLLs. Implementing COM objects in DLLs is generally simpler, because in Win32, a program and the DLL it uses reside in the same memory address space. This means that if the program passes a memory address to the DLL, the address remains valid. When you use two executable files, COM has a lot of work to do behind the scenes to let the two applications communicate. This mechanism is called marshaling (which, to be accurate, is required also by DLLs if the client is multi-threaded). Note that a DLL implementing COM objects is described as an in-process server, whereas when the server is a separate executable, it is called an out-of-process server. However, when DLLs are executing on another machine (DCOM) or inside a host environment (MTS), they are also out-of-process.