Middleware is a software layer that stands between the networked operating system and the application and provides well known reusable solutions to frequently encountered problems like heterogeneity, interoperability, security, dependability. Further, with networks becoming increasingly pervasive, middleware appears as a major building block for the development of future software systems. Starting with the impact of pervasive networking on computing models, manifested by now common grid and ubiquitous computing, this paper surveys related challenges for the middleware and related impact on the software development. Indeed, future applications will need to cope with advanced non-functional properties such as context- awareness and mobility, for which adequate middleware support must be devised together with accompanying software development notations, methods and tools. This leads us to introduce our view on next generation middleware, considering both technological advances in the networking area but also the need for closer integration with software engineering best practices, to ultimately suggest middleware-based software processes.