You can carry out the following steps to increase the speed of your magento web shop. Please note: this is only supported on our optimized Magento webhosting packages.
Paste the following code in /app/etc/local.xml between a tag.
Don't forget to put your own site name next to prefix with a _ after the last letter, such as in the example. Subsequently, your site will build its own cache.
<cache>
<backend>apc</backend>
<prefix>yoursitename__</prefix>
</cache>
<cache>
<backend>memcached</backend>
<memcached>
<servers>
<server>
<host><![CDATA[127.0.0.1]]></host>
<port><![CDATA[11211]]></port>
<persistent><![CDATA[1]]></persistent>
</server>
</servers>
<compression><![CDATA[0]]></compression>
<cache_dir><![CDATA[]]></cache_dir>
<hashed_directory_level><![CDATA[]]></hashed_directory_level>
<hashed_directory_umask><![CDATA[]]></hashed_directory_umask>
<file_name_prefix><![CDATA[]]></file_name_prefix>
</memcached>
</cache>