Optimizing cache-resident area where cache residence control in units of LUs is employed to a storage apparatus that virtualizes the capacity by acquiring only a cache area of a size that is the same as the physical capacity assigned to the LU. An LU is a logical space resident in cache memory is configured by a set of pages acquired by dividing a pool volume as a physical space created by using a plurality of storage devices in a predetermined size. When the LU to be resident in the cache memory is created, a capacity corresponding to the size of the LU is not initially acquired in the cache memory, a cache capacity that is the same as the physical capacity allocated to a new page is acquired in the cache memory each time when the page is newly allocated, and the new page is resident in the cache memory.