Serverless applications, known for their scalability, speed, and cost-effectiveness, benefit significantly from effective caching strategies to enhance performance and reduce costs. While local caching in serverless environments like AWS Lambda can improve efficiency by reusing resources within an execution environment, it has limitations due to its ephemeral nature and scope. A centralized caching approach, such as using Momento, a truly serverless cache, allows data to be shared across execution environments and microservices, enabling faster data access and reducing redundant calls to downstream services. This serverless caching solution eliminates the management overhead associated with traditional caching systems like AWS DAX or ElastiCache, providing a scalable, low-cost alternative that helps overcome the data size limitations of AWS services. By implementing a centralized cache, developers can enhance the performance of serverless applications, facilitate service-to-service communication, and simplify the architecture without relying on workarounds to avoid service limits.