It is not a virtual machine. But every process has it's memory limited. And 
Java will insanely (try to) reserve 1/4 of memory for its heap on every run, by 
default. Ugly language, that would be at least 3GB on this server. So the fix 
is -Xms and -Xmx passed using _JAVA_OPTIONS variable. Now it happily runs 
saying:

"Picked up _JAVA_OPTIONS: -Xmx64m -Xms6m"



> I have seen this error before when running java inside a vm container
> (openvz, lxc) where the kernel does not give java permission to query
> the amount of available memory, and hence java assumes it must be 0.
> In these cases you need to manually set the MaxHeapSize by passing a
> parameter to java, see:
> http://stackoverflow.com/questions/4401396/could-not-reserve-enough-space-for-object-heap.
> 
> I am not sure where in the compilation that java gets invoked, and if
> there is a way to pass parameters. Perhaps you can use the
> _JAVA_OPTIONS environment variable.

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