Fatwire Content Server has many caches, and it is very important to understand all of them.
Here a short list of the caches you have to consider
This is a content cache (html primarily) This cache is stored on disk. It can became very large because it caches a rendered html in full. It is fast but it read the content from disk and this can slow down a busy website.
This is another content cache (html). This cache is stored in memory. To limit the memory required, it does not store the full html but keeps the content split in different pieces, and reassemble it on demand.
This cache is for binary content. It is a memory cache as well up to a certain limit, then it became a disk cache.
This cache is for the result of queries. To avoid running the same query again and again, Fatwire store the result and keep it in memory for a while. Since many queries are the same, this can help a lot. Actually, thank to this cache, Fatwire often performs well even with very slow databases.