Network continuous-media applications are emerging with a great pace. Cache memories have long been recognized as a key resource (along with network bandwidth) whose intelligent exploitation can ensure high performance for such applications. Cache memories exist at the continuous-media servers and their proxy servers in the network. Within a server, cache memories exist in a hierarchy (at the host, the storage-devices, and at intermediate multi-device controllers). Our research is concerned with how to best exploit these resources in the context of continuous media servers and in particular, how to best exploit the available cache memories at the drive, the disk array controller, and the host levels. Our results determine under which circumstances and system configurations it is preferable to devote the available memory to traditional caching (a.k.a. ldquodata sharingrdquo) techniques as opposed to prefetching techniques. In addition, we show how to configure the available memory for optimal performance and optimal cost. Our results show that prefetching techniques are preferable for small-size caches (such as those expected at the drive level). For very large caches (such as those employed at the host level) caching techniques are preferable. For intermediate cache sizes (such as those at multi-device controllers) a combination of both strategies should be employed.