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Scale-Out SDN architecture provides an elegant deployment solution for network functions enabling significant reductions in CAPEX and OPEX and massive scalability. The flexibility of the solution accommodates a wide range of network applications and services, including routing, service chaining, EPC, and load balancing, to name a few. This same flexibility allows different network elements to scale independently based on a wide variety of characteristics (number of users, forwarding or controller capacity, bandwidth, etc). In this presentation we will explain the Scale-Out SDN architecture, we will show how we applied the presented principles to build a Scale-Out SDN Router (based on the ATRIUM Project), and we explain how this architecture enables many applications to scale-out to extremely large configuration in simple, modular increments.