diff --git a/configure.ac b/configure.ac
index 43d671bc6e..496c1133c1 100644
--- a/configure.ac
+++ b/configure.ac
@@ -32,6 +32,14 @@ AC_TRY_LINK([],[],
 	])
 LDFLAGS=$LDFLAGS_SAVED
 
+# allow building programs with static link.  we need to make it selective
+# because loadable modules cannot be statically linked.
+AC_ARG_ENABLE([static-link],
+AC_HELP_STRING([--enable-static-link],
+  [build programs with static link [[default=no]]]),
+  [enable_static_link=yes], [enable_static_link=no])
+AM_CONDITIONAL(USE_STATIC_LINK, test $enable_static_link = yes)
+
 # OS dependent compiler flags
 case "$host" in
 *-solaris*)
@@ -409,6 +417,7 @@ AC_CONFIG_FILES([Makefile
                  src/lib/bench/example/Makefile
                  src/lib/bench/tests/Makefile
                  src/lib/cc/Makefile
+                 src/lib/cc/tests/Makefile
                  src/lib/python/Makefile
                  src/lib/python/isc/Makefile
                  src/lib/python/isc/datasrc/Makefile
@@ -425,6 +434,7 @@ AC_CONFIG_FILES([Makefile
                  src/lib/dns/python/Makefile
                  src/lib/dns/python/tests/Makefile
                  src/lib/exceptions/Makefile
+                 src/lib/exceptions/tests/Makefile
                  src/lib/datasrc/Makefile
                  src/lib/datasrc/tests/Makefile
                  src/lib/xfr/Makefile
diff --git a/src/bin/auth/Makefile.am b/src/bin/auth/Makefile.am
index 9952f1970e..daa2d26f5a 100644
--- a/src/bin/auth/Makefile.am
+++ b/src/bin/auth/Makefile.am
@@ -8,6 +8,10 @@ AM_CPPFLAGS += -I$(top_srcdir)/src/bin -I$(top_builddir)/src/bin
 
 AM_CXXFLAGS = $(B10_CXXFLAGS)
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 pkglibexecdir = $(libexecdir)/@PACKAGE@
 
 CLEANFILES = *.gcno *.gcda auth.spec spec_config.h
@@ -50,13 +54,13 @@ b10_auth_SOURCES = auth_srv.cc auth_srv.h
 b10_auth_SOURCES += change_user.cc change_user.h
 b10_auth_SOURCES += common.h
 b10_auth_SOURCES += main.cc
-b10_auth_LDADD =  $(top_builddir)/src/lib/datasrc/.libs/libdatasrc.a
-b10_auth_LDADD += $(top_builddir)/src/lib/dns/.libs/libdns++.a
-b10_auth_LDADD += $(top_builddir)/src/lib/config/.libs/libcfgclient.a
-b10_auth_LDADD += $(top_builddir)/src/lib/cc/.libs/libcc.a
-b10_auth_LDADD += $(top_builddir)/src/lib/exceptions/.libs/libexceptions.a
+b10_auth_LDADD =  $(top_builddir)/src/lib/datasrc/libdatasrc.la
+b10_auth_LDADD += $(top_builddir)/src/lib/dns/libdns++.la
+b10_auth_LDADD += $(top_builddir)/src/lib/config/libcfgclient.la
+b10_auth_LDADD += $(top_builddir)/src/lib/cc/libcc.la
+b10_auth_LDADD += $(top_builddir)/src/lib/exceptions/libexceptions.la
 b10_auth_LDADD += $(top_builddir)/src/bin/auth/libasio_link.a
-b10_auth_LDADD += $(top_builddir)/src/lib/xfr/.libs/libxfr.a
+b10_auth_LDADD += $(top_builddir)/src/lib/xfr/libxfr.la
 b10_auth_LDADD += $(SQLITE_LIBS)
 
 # TODO: config.h.in is wrong because doesn't honor pkgdatadir
diff --git a/src/bin/auth/tests/Makefile.am b/src/bin/auth/tests/Makefile.am
index ab118abf93..53cd05933a 100644
--- a/src/bin/auth/tests/Makefile.am
+++ b/src/bin/auth/tests/Makefile.am
@@ -5,6 +5,10 @@ AM_CPPFLAGS += -DTEST_DATA_DIR=\"$(srcdir)/testdata\"
 
 AM_CXXFLAGS = $(B10_CXXFLAGS)
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 TESTS =
@@ -22,13 +26,13 @@ run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
 run_unittests_LDFLAGS = $(AM_LDFLAGS) $(GTEST_LDFLAGS)
 run_unittests_LDADD = $(GTEST_LDADD)
 run_unittests_LDADD += $(SQLITE_LIBS)
-run_unittests_LDADD +=  $(top_builddir)/src/lib/datasrc/.libs/libdatasrc.a
-run_unittests_LDADD +=  $(top_builddir)/src/lib/dns/.libs/libdns++.a
-run_unittests_LDADD += $(top_builddir)/src/lib/config/.libs/libcfgclient.a
-run_unittests_LDADD += $(top_builddir)/src/lib/cc/.libs/libcc.a
-run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/.libs/libexceptions.a
+run_unittests_LDADD +=  $(top_builddir)/src/lib/datasrc/libdatasrc.la
+run_unittests_LDADD +=  $(top_builddir)/src/lib/dns/libdns++.la
+run_unittests_LDADD += $(top_builddir)/src/lib/config/libcfgclient.la
+run_unittests_LDADD += $(top_builddir)/src/lib/cc/libcc.la
+run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/libexceptions.la
 run_unittests_LDADD += $(top_builddir)/src/bin/auth/libasio_link.a
-run_unittests_LDADD += $(top_builddir)/src/lib/xfr/.libs/libxfr.a
+run_unittests_LDADD += $(top_builddir)/src/lib/xfr/libxfr.la
 endif
 
 noinst_PROGRAMS = $(TESTS)
diff --git a/src/bin/host/Makefile.am b/src/bin/host/Makefile.am
index ac703b42c9..3879562520 100644
--- a/src/bin/host/Makefile.am
+++ b/src/bin/host/Makefile.am
@@ -3,12 +3,16 @@ AM_CPPFLAGS += -I$(top_srcdir)/src/lib/dns -I$(top_builddir)/src/lib/dns
 
 AM_CXXFLAGS = $(B10_CXXFLAGS)
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 bin_PROGRAMS = host
 host_SOURCES = host.cc
-host_LDADD = $(top_builddir)/src/lib/dns/.libs/libdns++.a
-host_LDADD += $(top_builddir)/src/lib/exceptions/.libs/libexceptions.a
+host_LDADD = $(top_builddir)/src/lib/dns/libdns++.la
+host_LDADD += $(top_builddir)/src/lib/exceptions/libexceptions.la
 
 #man_MANS = host.1
 #EXTRA_DIST = $(man_MANS) host.xml
diff --git a/src/bin/xfrin/tests/Makefile.am b/src/bin/xfrin/tests/Makefile.am
index 8395f364e9..1d64225653 100644
--- a/src/bin/xfrin/tests/Makefile.am
+++ b/src/bin/xfrin/tests/Makefile.am
@@ -7,6 +7,6 @@ PYCOVERAGE = $(PYTHON)
 check-local:
 	for pytest in $(PYTESTS) ; do \
 	echo Running test: $$pytest ; \
-	env PYTHONPATH=$(abs_top_builddir)/src/lib/dns/.libs:$(abs_top_builddir)/src/lib/dns/python/.libs:$(abs_top_builddir)/src/bin/xfrin:$(abs_top_srcdir)/src/lib/python:$(abs_top_builddir)/src/lib/python \
+	env PYTHONPATH=$(abs_top_builddir)/src/lib/dns/python/.libs:$(abs_top_builddir)/src/bin/xfrin:$(abs_top_srcdir)/src/lib/python:$(abs_top_builddir)/src/lib/python \
 	$(PYCOVERAGE) $(abs_srcdir)/$$pytest ; \
 	done
diff --git a/src/bin/xfrout/tests/Makefile.am b/src/bin/xfrout/tests/Makefile.am
index c1c613ea89..fb344aac24 100644
--- a/src/bin/xfrout/tests/Makefile.am
+++ b/src/bin/xfrout/tests/Makefile.am
@@ -7,6 +7,6 @@ PYCOVERAGE = $(PYTHON)
 check-local:
 	for pytest in $(PYTESTS) ; do \
 	echo Running test: $$pytest ; \
-	env PYTHONPATH=$(abs_top_builddir)/src/bin/xfrout:$(abs_top_srcdir)/src/lib/python:$(abs_top_builddir)/src/lib/python:$(abs_top_builddir)/src/lib/dns/.libs:$(abs_top_builddir)/src/lib/dns/python/.libs:$(abs_top_builddir)/src/lib/xfr/.libs \
+	env PYTHONPATH=$(abs_top_builddir)/src/bin/xfrout:$(abs_top_srcdir)/src/lib/python:$(abs_top_builddir)/src/lib/python:$(abs_top_builddir)/src/lib/dns/python/.libs:$(abs_top_builddir)/src/lib/xfr/.libs \
 	$(PYCOVERAGE) $(abs_srcdir)/$$pytest ; \
 	done
diff --git a/src/lib/bench/example/Makefile.am b/src/lib/bench/example/Makefile.am
index 8257b3576d..0563380d4d 100644
--- a/src/lib/bench/example/Makefile.am
+++ b/src/lib/bench/example/Makefile.am
@@ -1,5 +1,9 @@
 AM_CPPFLAGS = -I$(top_srcdir)/src/lib -I$(top_builddir)/src/lib
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 noinst_PROGRAMS = search_bench
diff --git a/src/lib/bench/tests/Makefile.am b/src/lib/bench/tests/Makefile.am
index 8fed7ea924..bdae9ded9d 100644
--- a/src/lib/bench/tests/Makefile.am
+++ b/src/lib/bench/tests/Makefile.am
@@ -2,6 +2,10 @@ AM_CPPFLAGS = -I$(top_builddir)/src/lib -I$(top_srcdir)/src/lib
 AM_CPPFLAGS += -DTEST_DATA_DIR=\"$(srcdir)/testdata\"
 AM_CXXFLAGS = $(B10_CXXFLAGS)
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 TESTS =
diff --git a/src/lib/cc/Makefile.am b/src/lib/cc/Makefile.am
index 320ba9c125..88c8890e55 100644
--- a/src/lib/cc/Makefile.am
+++ b/src/lib/cc/Makefile.am
@@ -1,3 +1,5 @@
+SUBDIRS = . tests
+
 AM_CPPFLAGS = -I$(top_srcdir)/src/lib -I$(top_builddir)/src/lib
 AM_CPPFLAGS += -I$(top_srcdir)/src/lib/dns -I$(top_builddir)/src/lib/dns
 
@@ -19,20 +21,3 @@ session_config.h: session_config.h.pre
 	$(SED) -e "s|@@LOCALSTATEDIR@@|$(localstatedir)|" session_config.h.pre >$@
 
 BUILT_SOURCES = session_config.h 
-
-TESTS =
-if HAVE_GTEST
-TESTS += run_unittests
-# (TODO: these need to be completed and moved to tests/)
-run_unittests_SOURCES = data_unittests.cc session_unittests.cc run_unittests.cc
-run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
-# TODO: remove PTHREAD_LDFLAGS (and from configure too)
-run_unittests_LDFLAGS = $(AM_LDFLAGS) $(GTEST_LDFLAGS) $(PTHREAD_LDFLAGS)
-
-run_unittests_LDADD = libcc.la $(GTEST_LDADD)
-run_unittests_LDADD +=  $(top_builddir)/src/lib/dns/.libs/libdns++.a
-run_unittests_LDADD +=  $(top_builddir)/src/lib/exceptions/.libs/libexceptions.a
-
-endif
-
-noinst_PROGRAMS = $(TESTS)
diff --git a/src/lib/cc/tests/Makefile.am b/src/lib/cc/tests/Makefile.am
new file mode 100644
index 0000000000..47ff9f948e
--- /dev/null
+++ b/src/lib/cc/tests/Makefile.am
@@ -0,0 +1,31 @@
+AM_CPPFLAGS = -I$(top_builddir)/src/lib -I$(top_srcdir)/src/lib
+AM_CPPFLAGS += -I$(top_srcdir)/src/lib/dns -I$(top_builddir)/src/lib/dns
+
+AM_CXXFLAGS = $(B10_CXXFLAGS)
+if USE_GXX			#XXX: see ../Makefile.am
+AM_CXXFLAGS += -Wno-unused-parameter
+endif
+
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
+CLEANFILES = *.gcno *.gcda
+
+TESTS =
+if HAVE_GTEST
+TESTS += run_unittests
+# (TODO: these need to be completed and moved to tests/)
+run_unittests_SOURCES = data_unittests.cc session_unittests.cc run_unittests.cc
+run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
+# TODO: remove PTHREAD_LDFLAGS (and from configure too)
+run_unittests_LDFLAGS = $(AM_LDFLAGS) $(GTEST_LDFLAGS) $(PTHREAD_LDFLAGS)
+
+run_unittests_LDADD = $(GTEST_LDADD)
+run_unittests_LDADD +=  $(top_builddir)/src/lib/cc/libcc.la
+run_unittests_LDADD +=  $(top_builddir)/src/lib/dns/libdns++.la
+run_unittests_LDADD +=  $(top_builddir)/src/lib/exceptions/libexceptions.la
+
+endif
+
+noinst_PROGRAMS = $(TESTS)
diff --git a/src/lib/cc/data_unittests.cc b/src/lib/cc/tests/data_unittests.cc
similarity index 99%
rename from src/lib/cc/data_unittests.cc
rename to src/lib/cc/tests/data_unittests.cc
index c6a5133073..bb3e4943a2 100644
--- a/src/lib/cc/data_unittests.cc
+++ b/src/lib/cc/tests/data_unittests.cc
@@ -18,7 +18,7 @@
 #include <boost/foreach.hpp>
 #include <boost/assign/std/vector.hpp>
 
-#include <data.h>
+#include <cc/data.h>
 
 using namespace isc::data;
 
diff --git a/src/lib/cc/run_unittests.cc b/src/lib/cc/tests/run_unittests.cc
similarity index 100%
rename from src/lib/cc/run_unittests.cc
rename to src/lib/cc/tests/run_unittests.cc
diff --git a/src/lib/cc/session_unittests.cc b/src/lib/cc/tests/session_unittests.cc
similarity index 98%
rename from src/lib/cc/session_unittests.cc
rename to src/lib/cc/tests/session_unittests.cc
index 307691fc17..d046b10866 100644
--- a/src/lib/cc/session_unittests.cc
+++ b/src/lib/cc/tests/session_unittests.cc
@@ -22,10 +22,11 @@
 #include <asio.hpp>
 
 #include <gtest/gtest.h>
-#include <session.h>
 
 #include <exceptions/exceptions.h>
 
+#include <cc/session.h>
+
 using namespace isc::cc;
 
 TEST(AsioSession, establish) {
diff --git a/src/lib/config/tests/Makefile.am b/src/lib/config/tests/Makefile.am
index 0939508974..58fd1deffa 100644
--- a/src/lib/config/tests/Makefile.am
+++ b/src/lib/config/tests/Makefile.am
@@ -6,6 +6,10 @@ if USE_GXX
 AM_CXXFLAGS += -Wno-unused-parameter
 endif
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 lib_LTLIBRARIES = libfake_session.la
diff --git a/src/lib/datasrc/tests/Makefile.am b/src/lib/datasrc/tests/Makefile.am
index b8e6987cc1..6485c2bad4 100644
--- a/src/lib/datasrc/tests/Makefile.am
+++ b/src/lib/datasrc/tests/Makefile.am
@@ -4,6 +4,10 @@ AM_CPPFLAGS += -DTEST_DATA_DIR=\"$(srcdir)/testdata\"
 
 AM_CXXFLAGS = $(B10_CXXFLAGS)
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 TESTS =
@@ -22,10 +26,10 @@ run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
 run_unittests_LDFLAGS = $(AM_LDFLAGS) $(GTEST_LDFLAGS)
 run_unittests_LDADD = $(GTEST_LDADD)
 run_unittests_LDADD += $(SQLITE_LIBS)
-run_unittests_LDADD += $(top_builddir)/src/lib/datasrc/.libs/libdatasrc.a 
-run_unittests_LDADD += $(top_builddir)/src/lib/dns/.libs/libdns++.a 
-run_unittests_LDADD += $(top_builddir)/src/lib/cc/.libs/libcc.a
-run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/.libs/libexceptions.a
+run_unittests_LDADD += $(top_builddir)/src/lib/datasrc/libdatasrc.la 
+run_unittests_LDADD += $(top_builddir)/src/lib/dns/libdns++.la
+run_unittests_LDADD += $(top_builddir)/src/lib/cc/libcc.la
+run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/libexceptions.la
 endif
 
 noinst_PROGRAMS = $(TESTS)
diff --git a/src/lib/dns/tests/Makefile.am b/src/lib/dns/tests/Makefile.am
index 790f666e37..165bcaf99b 100644
--- a/src/lib/dns/tests/Makefile.am
+++ b/src/lib/dns/tests/Makefile.am
@@ -3,6 +3,10 @@ AM_CPPFLAGS += -I$(top_srcdir)/src/lib/dns -I$(top_builddir)/src/lib/dns
 AM_CPPFLAGS += -DTEST_DATA_DIR=\"$(srcdir)/testdata\"
 AM_CXXFLAGS = $(B10_CXXFLAGS)
 
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
 CLEANFILES = *.gcno *.gcda
 
 TESTS =
@@ -40,8 +44,8 @@ run_unittests_SOURCES += run_unittests.cc
 run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
 run_unittests_LDFLAGS = $(AM_LDFLAGS) $(GTEST_LDFLAGS)
 run_unittests_LDADD = $(GTEST_LDADD)
-run_unittests_LDADD += $(top_builddir)/src/lib/dns/.libs/libdns++.a
-run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/.libs/libexceptions.a
+run_unittests_LDADD += $(top_builddir)/src/lib/dns/libdns++.la
+run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/libexceptions.la
 endif
 
 noinst_PROGRAMS = $(TESTS)
diff --git a/src/lib/exceptions/Makefile.am b/src/lib/exceptions/Makefile.am
index 3b5310b2ac..eff83b2b96 100644
--- a/src/lib/exceptions/Makefile.am
+++ b/src/lib/exceptions/Makefile.am
@@ -1,3 +1,5 @@
+SUBDIRS = . tests
+
 AM_CPPFLAGS = -I$(top_srcdir)/src/lib -I$(top_builddir)/src/lib
 AM_CXXFLAGS=$(B10_CXXFLAGS)
 
@@ -6,17 +8,5 @@ libexceptions_la_SOURCES = exceptions.h exceptions.cc
 
 CLEANFILES = *.gcno *.gcda
 
-TESTS =
-if HAVE_GTEST
-TESTS += run_unittests
-run_unittests_SOURCES = run_unittests.cc
-run_unittests_SOURCES += exceptions_unittest.cc
-run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
-run_unittests_LDFLAGS = $(GTEST_LDFLAGS)
-run_unittests_LDADD = .libs/libexceptions.a $(GTEST_LDADD)
-endif
-
-noinst_PROGRAMS = $(TESTS)
-
 libexceptions_includedir = $(includedir)/exceptions
 libexceptions_include_HEADERS = exceptions.h
diff --git a/src/lib/exceptions/tests/Makefile.am b/src/lib/exceptions/tests/Makefile.am
new file mode 100644
index 0000000000..2444b025c6
--- /dev/null
+++ b/src/lib/exceptions/tests/Makefile.am
@@ -0,0 +1,23 @@
+AM_CPPFLAGS = -I$(top_builddir)/src/lib -I$(top_srcdir)/src/lib
+AM_CPPFLAGS += -I$(top_srcdir)/src/lib/dns -I$(top_builddir)/src/lib/dns
+
+AM_CXXFLAGS = $(B10_CXXFLAGS)
+
+if USE_STATIC_LINK
+AM_LDFLAGS = -static
+endif
+
+CLEANFILES = *.gcno *.gcda
+
+TESTS =
+if HAVE_GTEST
+TESTS += run_unittests
+run_unittests_SOURCES = run_unittests.cc
+run_unittests_SOURCES += exceptions_unittest.cc
+run_unittests_CPPFLAGS = $(AM_CPPFLAGS) $(GTEST_INCLUDES)
+run_unittests_LDFLAGS = $(GTEST_LDFLAGS)
+run_unittests_LDADD = $(GTEST_LDADD)
+run_unittests_LDADD += $(top_builddir)/src/lib/exceptions/libexceptions.la
+endif
+
+noinst_PROGRAMS = $(TESTS)
diff --git a/src/lib/exceptions/exceptions_unittest.cc b/src/lib/exceptions/tests/exceptions_unittest.cc
similarity index 100%
rename from src/lib/exceptions/exceptions_unittest.cc
rename to src/lib/exceptions/tests/exceptions_unittest.cc
diff --git a/src/lib/exceptions/run_unittests.cc b/src/lib/exceptions/tests/run_unittests.cc
similarity index 100%
rename from src/lib/exceptions/run_unittests.cc
rename to src/lib/exceptions/tests/run_unittests.cc