Configuration ManagerHow-to

Peer cache vs BranchCache vs Delivery Optimization in Configuration Manager

Which peer-to-peer and caching options Configuration Manager offers, what content each one serves, how clients pick a source, and how to prove where content came from.

Branch offices without a distribution point don't have to pull every package across the WAN. Configuration Manager offers four ways to keep content local: client peer cache, Windows BranchCache, Delivery Optimization and Microsoft Connected Cache on a distribution point. They overlap less than their names suggest. In this post I'll explain what each one serves, how a client chooses where to download from, how to set them up, and how to prove which source a client actually used.

How this guide is organized: How it works → Step-by-step → Verify → Tips and gotchasFlow diagram of the article's sections in reading order: 1. How it works. 2. Step-by-step (3 steps: Enable peer cache sources; Enable BranchCache; Configure Delivery Optimization and Connected Cache). 3. Verify. 4. Tips and gotchas. Toolbox: ContentTransferManager.log, LocationServices.log, Hierarchy Settings › General, BytesFromPeers, BytesFromCacheServer.1How it works2Step-by-step3Verify4Tips and gotchas1Enable peer cachesources2Enable BranchCache3Configure DeliveryOptimization and Conne…TOOLBOXContentTransferManager.logLocationServices.logHierarchy Settings › GeneralBytesFromPeersBytesFromCacheServerHow this guide is organized: How it works → Step-by-step → Verify → Tips and gotchasFlow diagram of the article's sections in reading order: 1. How it works. 2. Step-by-step (3 steps: Enable peer cache sources; Enable BranchCache; Configure Delivery Optimization and Connected Cache). 3. Verify. 4. Tips and gotchas. Toolbox: ContentTransferManager.log, LocationServices.log, Hierarchy Settings › General, BytesFromPeers, BytesFromCacheServer.1How it works2Step-by-step1Enable peer cache sources2Enable BranchCache3Configure Delivery Optimization and ConnectedCache3Verify4Tips and gotchasTOOLBOXContentTransferManager.logLocationServices.logHierarchy Settings › GeneralBytesFromPeersBytesFromCacheServer
At a glance: how this guide is organized · 3 steps · 5 key settings and tools

Status (October 2026): Microsoft Learn says Intune began rolling out HTTPS for Win32 app content downloads, by region, from June 16, 2026. Distribution points that run Connected Cache for co-managed devices need the latest Connected Cache version (KB33247081 for versions 2409, 2503, 2509 and 2603, or Configuration Manager 2603) and an IIS HTTPS certificate from a trusted CA instead of a self-signed one. Re-check the Connected Cache page for the current state.

How it works#

Which local content option serves a downloadIs it content from a Configuration Manager deployment? if Yes: Distribution points, peer cache, BranchCache (Connected Cache doesn't serve it, not even updates from your software update point.); if No, cloud content: Is the device co-managed with workloads on Intune, or cloud-only? if Yes: Connected Cache distribution point or DO peers (Connected Cache only serves clients in its own boundary group.); if No: Delivery Optimization peers (Peers share a DO group ID taken from Configuration Manager boundary groups.)Is it content from aConfiguration Managerdeployment?NOTEDistribution points,peer cache,BranchCacheConnected Cache doesn'tserve it, not even updatesfrom your software updatepoint.YesIs the device co-managed withworkloads on Intune, orcloud-only?NOTEConnected Cachedistribution point or DOpeersConnected Cache onlyserves clients in its ownboundary group.YesNOTEDelivery OptimizationpeersPeers share a DO group IDtaken from ConfigurationManager boundary groups.NoNo, cloud contentWhich local content option serves a downloadIs it content from a Configuration Manager deployment? if Yes: Distribution points, peer cache, BranchCache (Connected Cache doesn't serve it, not even updates from your software update point.); if No, cloud content: Is the device co-managed with workloads on Intune, or cloud-only? if Yes: Connected Cache distribution point or DO peers (Connected Cache only serves clients in its own boundary group.); if No: Delivery Optimization peers (Peers share a DO group ID taken from Configuration Manager boundary groups.)Is it content from a Configuration Managerdeployment?YesNOTEDistribution points, peer cache, BranchCacheConnected Cache doesn't serve it, not even updatesfrom your software update point.No, cloud contentIs the device co-managed with workloadson Intune, or cloud-only?YesNOTEConnected Cache distribution point or DOpeersConnected Cache only serves clients in its ownboundary group.NoNOTEDelivery Optimization peersPeers share a DO group ID taken fromConfiguration Manager boundary groups.
Figure 1 · Decision tree Which local content option serves a download. The four options overlap less than their names suggest: first ask where the content comes from, then how the device is managed.
OptionServesKey requirements
Peer cacheAny content in a peer's Configuration Manager cache: applications, packages, updates, OS images, Microsoft 365 Apps and express filesSources are domain-joined Windows clients you enable in client settings; peers only in the client's current boundary group
BranchCacheConfiguration Manager downloads from distribution points that support itBranchCache enabled in client settings; Windows only
Delivery Optimization (peer to peer)Microsoft cloud content, such as Windows updates from Windows Update, Microsoft 365 Apps and Intune Win32 appsThe DO group ID taken from Configuration Manager boundary groups; at least 4 GB of memory for peering
Connected Cache on a distribution pointCloud-managed content for co-managed devices whose workloads moved to Intune, and for cloud-only devices pointed at itWindows Enterprise E3/E5, Windows Education A3/A5 or VDA E3/E5 licenses; a distribution point with no other site roles and internet access

Two points catch people out. Peer cache doesn't depend on BranchCache; they work side by side. And Connected Cache on a distribution point doesn't serve content from Configuration Manager deployments, such as software updates from your software update point. That content comes from distribution points, peer cache and BranchCache.

How a client picks a source#

For each download, the client sends a content location request to its management point. The reply lists the distribution points in its current boundary group and every online peer cache source in that group that has the content, plus distribution points from neighbor and default site boundary groups after their fallback times. The management point never offers peer cache sources from a neighbor group. Boundary group options on the Options tab adjust the order: Allow peer downloads in this boundary group, During peer downloads, only use peers within the same subnet, Prefer distribution points over peers within the same subnet and Prefer cloud based sources over on-premise sources. If your groups aren't solid yet, start with boundaries and boundary groups explained.

Step-by-step#

1. Enable peer cache sources#

  1. Pick a few wired, always-on desktops per location with spare disk space, and put them in a collection.
  2. Create a custom device client setting: Client Cache Settings › Enable as peer cache source = Yes. Keep the default ports (8004 for the initial broadcast, 8003 for downloads) unless they clash; Configuration Manager opens them in Windows Firewall, but third-party firewalls need rules. Size the client cache for your largest content, such as OS upgrade packages.
  3. Deploy the setting to the collection. Sources report their cached content to the management point with state messages, and the management point checks that a source is online over the client notification channel (TCP 10123).
  4. Optional: in Hierarchy Settings › General, enable Configure client peer cache sources to divide content into parts, so several sources download different parts from a remote distribution point and then share them. This only applies to background downloads such as required deployments.

2. Enable BranchCache#

In a client setting, set Client Cache Settings › Configure BranchCache and Enable BranchCache to Yes, and set the maximum BranchCache cache size. BranchCache is always enabled on deployments, so clients use it whenever the distribution point supports it.

3. Configure Delivery Optimization and Connected Cache#

  1. In client settings, Delivery Optimization › Use Configuration Manager Boundary Groups for Delivery Optimization Group ID = Yes, so DO peers only within a boundary group. Keep Allow peer downloads in this boundary group selected.
  2. For Connected Cache, open the distribution point's properties and, on the General tab, select Enable this distribution point to be used as Microsoft Connected Cache server, confirm the licenses and choose the drive and size (100 GB by default). Don't preinstall IIS Application Request Routing; setup installs and configures it.
  3. In client settings, enable Delivery Optimization › Enable devices managed by Configuration Manager to use Microsoft Connected Cache servers for content download. Clients must be in the same boundary group as the Connected Cache distribution point; neighbor and default groups aren't used.

Verify#

  • Configuration Manager content: on the client, LocationServices.log records the content location reply, and ContentTransferManager.log and DataTransferService.log show the URL used. A peer cache download points at a peer's host name instead of a distribution point. For divided downloads, read ContentTransferManager.log on the sources and MP_Location.log on the management point.
  • Across the site: the Client Data Sources dashboard shows how much content came from distribution points, peers and BranchCache. The reports Peer cache source content rejection, by condition and details show why sources refused requests.
  • BranchCache and Delivery Optimization, on the client:
PowerShell
Get-BCStatus | Select-Object BranchCacheIsEnabled, BranchCacheServiceStatus
Get-DeliveryOptimizationStatus |
    Select-Object FileId, BytesFromPeers, BytesFromCacheServer, BytesFromHttp, PercentPeerCaching

Good looks like this: branch clients download Configuration Manager content from a peer or the local distribution point before any fallback time, and Delivery Optimization jobs show non-zero BytesFromPeers or BytesFromCacheServer.

Tips and gotchas#

  • Peer sources refuse work when they're on battery saver, CPU load is above 80%, the disk queue length is above 10, or they have no free connections. The client then tries the next source.
  • Offline sources slow everyone down: by default a client can fail if the first 25 peer cache sources it tries are offline. Keep source lists small and healthy.
  • Not supported: Windows on Arm64 devices as peer cache sources or clients, and peer cache sources that aren't domain-joined.
  • Task sequences: a Software Center task sequence that reboots into Windows PE needs a network access account to download from peer cache sources.
  • Persist content you want peers to serve with the Persist content in the client cache option. Clients otherwise remove the oldest content first.
  • Still failing? See content not reaching distribution points and the application deployment error codes quick reference.

References#

Revision history: Oct 2026 — revised and re-checked against current documentation.

Written and checked against current Microsoft Learn documentation. Test changes with a pilot group before rolling them out to everyone, and if an admin center path has moved since, search for the setting name instead.

Spotted a mistake, or did this fix work differently for you? Email me or message me on LinkedIn — corrections are credited in the article.

Written by

Omer Eltayeb

Intune Subject Matter Expert in Cairo, Egypt, former Microsoft Cloud Solutions Architect, Microsoft Certified Trainer and Microsoft Innovative Educator Expert (2024–26) and Microsoft Elevate Educator Expert (2026–27). I share practical, step-by-step guides, study plans, scripts and toolkits for Microsoft Intune, Configuration Manager, Microsoft Entra ID, Microsoft Defender, Exchange and Microsoft 365 with the community.

Microsoft Certified Trainer (MCT) 2026Microsoft Innovative Educator Expert 2025–2026Microsoft Elevate Educator Expert 2026–2027ISC2 Certified Information Systems Security Professional (CISSP)Microsoft 365 Certified: Enterprise Administrator Expert (MS-102)