System Cache
Magento Enterprise Edition can cache frequently used data using various cache backends. Using a cache backend will always improve the performance of Magento Enterprise Edition. By default, when installed, Magento Enterprise Edition is set to use the file system as a cache backend. While the file system cache is the most reliable storage with unlimited size, it does not provide the best performance.
Magento Enterprise Edition v. 1.9 can also work with the following cache backends that provide performance better than that of the file system cache backend: APC—a bytecode cache for PHP which also provides a shared memory storage for application data
Memcached—a distributed, high-performance caching system
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