We've been experimenting with Varnish for the last week or so and have been very satisfied with the results. Initially we allocated 1GB for cache storage, but have found that to be insufficient. Our /var/lib/varnish/varnish_storage.bin file had hit the limit and Varnish started removing items from cache based on its "least-recently used" LRU algorithm. It was only just then we realised that there was probably a better way. After googling a bit, we discovered the malloc option for Varnish.