I'm running Wordpress website with "W3 Total cache plugin" for Memcached on Nginx. I know that there is a Nginx module available for Memcached and I'm wondering what's the preferred/recommended method - plugin or module? What's the actual difference?



Actual difference would be between caching methods. Don't use nginx module. Use standard memcached (apt-get install memcached / yum install memcached) with php-memcache module.

Then configure W3TC to use memcache as (page/database/object) cache.

When you use nginx memcached module, nginx is doing the caching while the uncached responses (cache miss) goes to wordpress, which IMO would be overcaching it :).

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