Caching is a technique to store the state of data outside of the main storage and store it in high-speed memory to improve performance. In a microservices environment, all apps are deployed with their multiple instances across various servers/containers on the hybrid cloud.

https://medium.com/design-microservices-architecture-with-patterns/microservices-distributed-caching-76828817e41b

Caching can increase performance, scalability, and availability for microservices. The main idea is reducing latency with cache and makes application faster. When the number of requests are increased, caching will be really important for accommodating whole requests with high availability.

If application request mostly comes for reading data that is not changes so frequently, then Caching will be so efficient. For example reading product catalog from e-commerce application can be cached in the architecture.

Caching also provide to avoid re-calculation processes. If one operations calculate by one server, then other application can consume calculated data from cache. In Microservices architectures are typically implement a distributed caching architecture.

https://medium.com/design-microservices-architecture-with-patterns/microservices-distributed-caching-76828817e41b

The main advantage of using distributed caching for microservices is that it allows for faster access to frequently accessed data. 

By storing this data in memory on multiple machines, it can be accessed more quickly, which can improve the performance of the overall system. 

https://www.linkedin.com/pulse/distributed-caching-redis-rajiv-srivastava/