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Servoy supports both Java 5 7 and Java 6 8 (for the Application Server, the Smart Client and Servoy Developer). As Java 6 has numerous performance improvements, it is preferred over Java 5. 

If the hardware in which Servoy is running is 64bit, make sure to also run a 64 bit Java Virtual Machine. When in doubt which version is used, check the Servoy Admin page, under Servoy Server Home > Servoy Server Status > JVM Information:

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When using the Service wrapper for java7:

# Java Additional Parameters
wrapper.java.additional.1=-Djava.awt.headless=true
wrapper.java.additional.2=-Duser.dir="C:\Servoy\application_server"
wrapper.java.additional.3=-Djava.io.tmpdir="C:Servoy\application_server\server\work"
wrapper.java.additional.4=-XX:MaxPermSize=128m=200m 
wrapper.java.additional.5=-server

server wrapper  for java 8 (now has metaspace instead of perm space)

# Java Additional Parameters
wrapper.java.additional.1=-Djava.awt.headless=true
wrapper.java.additional.2=-Duser.dir="C:\Servoy\application_server"
wrapper.java.additional.3=-Djava.io.tmpdir="C:Servoy\application_server\server\work"
wrapper.java.additional.4=-XX:MetaspaceSize=200M
wrapper.java.additional.5=-XX:MaxMetaspaceSize=200M
wrapper.java.additional.6=-XX:MinMetaspaceFreeRatio=0
wrapper.java.additional.7=-XX:MaxMetaspaceFreeRatio=100  
wrapper.java.additional.8=-server

If you have a lot of plugins then maybe that max perm or metaspace is not enough (if you get out of perm size or metaspace exceptions after a while)

then you need to increase the 200M 

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