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Question: Where is the cache stored in informatica? Answer: Cache is stored in the Informatica server memory and over flowed data is stored on the disk in file format which will be automatically deleted after the successful completion of the session run. If you want to store that data you have to use a persistant cache.
There is an impact in terms of time and resources. If there are 2 Million rows from the source qualifier, Informatica hits 2 Million times the database for the same query. When a lookup is cached: Informatica queries the database, brings the whole set of rows to the Informatica server and stores in a cache file.