ASP.NET supports three types of caching for Web-based applications:
• Page Level Caching (called Output Caching)
• Page Fragment Caching (often called Partial-Page Output Caching)
• Programmatic or Data Caching
Output Caching
Page level, or output caching, caches the HTML output of dynamic requests to ASP.NET Web pages. The way ASP.NET implements this (roughly) is through an Output Cache engine. Each time an incoming ASP.NET page request comes in, this engine checks to see if the page being requested has a cached output entry. If it does, this cached HTML is sent as a response; otherwise, the page is dynamically rendered, it's output is stored in the Output Cache engine.

Partial-Page Output CachingPartial-Page Output Caching, or page fragment caching, allows specific regions of pages to be cached. ASP.NET provides a way to take advantage of this powerful technique, requiring that the part(s) of the page you wish to have cached appear in a User Control. One way to specify that the contents of a User Control should be cached is to supply an OutputCache directive at the top of the User Control. That's it! The content inside the User Control will now be cached for the specified period, while the ASP.NET Web page that contains the User Control will continue to serve dynamic content. (Note that for this you should not place an OutputCache directive in the ASP.NET Web page that contains the User Control - just inside of the User Control.)

Data Caching
Sometimes, more control over what gets cached is desired. ASP.NET provides this power and flexibility by providing a cache engine. Programmatic or data caching takes advantage of the .NET Runtime cache engine to store any data or object between responses. That is, you can store objects into a cache, similar to the storing of objects in Application scope in classic ASP. (As with classic ASP, do not store open database connections in the cache!)
Realize that this data cache is kept in memory and "lives" as long as the host application does. In other words, when the ASP.NET application using data caching is restarted, the cache is destroyed and recreated. Data Caching is almost as easy to use as Output Caching or Fragment caching: you simply interact with it as you would any simple dictionary object.