Varnish is an HTTP accelerator that focuses on improving server-side speed. It uses in-memory caching and a custom configuration language to cache content, modify requests and responses, and improve performance. It has advantages over traditional caching solutions like Squid or Apache in that it is dedicated to caching, has high performance through optimized system calls and data handling, and allows for policy control through its configuration language. Globo.com uses Varnish extensively in its caching infrastructure to improve scalability and throughput compared to alternative solutions.