Actually, HotSpot is the brand name of the JVM (it is a trademark of Sun).
To understand the JVM options, open the java_home/jre/lib/i386/jvm.cfg file. It lists the
various options that are valid. You will note there that 'hotspot' equates to
'client'. Ultimately, these option decide which directory under java_home/bin will
be used to load the jvm.dll.
Usually, with application servers, you want to choose the server option. But, performance
testing with your application is the ultimate gauge as to which one to choose.
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