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In principle, caching works and is supported.
It also depends on the layput of you virtual server. If you have several virtual instances 'battling' for IO on the same disk, e.g. all virtual disks are stored on the same physical disk then an IO intesive application like MWG will have difficulties been speedy. If your server has multiple disks and create a 1:1 mapping between disk and MWG VM, then the IO improves. If you operate a SAN or similar, then IO will also improve compared to the 1:N mapping that I mentioned previously.
As we can't control your server, we recommend to not use caching in vmware, whereas it technically works.