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I'm preparing the move of a live website from a shared server to a seperate server running just that one site. Right now we're getting lots of traffic and Apache is having a hard time keeping up.

One of the things I'm considering for the new server is a installing a caching-proxy solution (like Varnish).

The only problem is that I only have 1 machine to work with, so Apache and Varnish would be running on the same box. Would that just negate the cache or would that still improve performance?

(As I see it: even on the same machine, when a request can by answered from cache, it doesn't have to be rendered by Apache, thus decreasing the load)

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up vote 3 down vote accepted

Depending on the workload having a caching proxy in front of apache on the same machine can really help. Hits on varnish certainly cause a lot less load than on apache, even if it's running on the same machine. This way it'll also be easier to move varnish to another machine for extra performance.

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