This document summarizes the key characteristics of next generation application servers. It discusses how traditional tier-based architectures are difficult to scale due to their siloed nature. It then introduces the concept of a scale-out application server that uses a space-based architecture with processing units that are self-sufficient units of scale. Each processing unit combines data, processing and messaging. This allows for linear scalability compared to traditional architectures. The document also discusses how middleware virtualization abstracts the physical resources and enables features like location transparency, dynamic service discovery and parallel execution. It provides options for adopting existing applications on this new platform and compares it to traditional J2EE application servers.