HSQLDB can handle large amounts of data (see http://stackoverflow.com/questions/4152911/what-is-hsqldb-limitations and http://hsqldb.sourceforge.net/web/hsqlFAQ.html).
However, I think it is common practice to switch to a more conventional (= popular) database, such as MySQL, PostgreSQL or a commercial database for production - see http://www.tersus.com/#Id=45 for additional details).
Regards,
David
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