Organizations (financial institutions, educational institutions, etc.) all over the globe carry out their day-to-day activities on the internet which to a very large extent has been one of their major driving forces towards rapid development. In a bid to sustain the growth, the need for an efficient and cost effective network cannot be over emphasized. The purpose of LAN based caching and forwarding is to improve the organization’s network efficiency and reliability by reducing the amount of traffic between the LAN and the Internet. Beyond distributing load away from server “Hot spots”, caching and forwarding can also save bandwidth, reduce latency and protect the network from clients that erroneously loop and generate repeated requests. This paper tends to analyze the cost and benefit of integrating forwarding and caching servers in organizations network mainstream.