It stands for permanent generation
Perm space is used to keep information for loaded classes and few other advanced features like String Pool(for highly optimized string equality testing), which usually get created by String.intern() methods. As your application(number of classes) will grow this space shall get filled quickly, since the garbage collection on this Space is not much effective to clean up as required, you quickly get Out of Memory : perm gen space error. After then, no application shall run on that machine effectively even after having a huge empty JVM.
Before starting your application you should java -XX:MaxPermSize to get rid of this error.
Permanent generation is special because it holds meta-data describing user lasses (classes that are not part of the Java language).
Examples of such meta-data are objects describing classes and methods and they are stored in the Permanent Generation.
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