Classical Set-Up Without CDN
The classical set-up is that you have a website at one location (one server) in the world. If all your visitors are near to that location then it is usually a well working set-up because all your visitors are being served at a short distance from your server.
But what if you have visitors from around the world?
But what if you want to target global audience? What if your customers are spread around the whole world? Then there is a natural problem. The speed of communication between your server and visitors' browsers through the Internet is very high (approx. 70% of the speed of light) but still it is limited, and on big distances such as the distance between New York and Tokyo or London and Sydney your server is simply too far from your visitors to serve your website flawlessly and your website is slow for far visitors and it is not good for your business. To target global audience you need more servers, you need more points of online presence because you need your website content close to your visitors.
Moreover, there are SEO problems too. Google rankings of your website at countries far from you are not as good as they could be because just like your visitors also Google takes latency (speed) of your website as the key factor for ranking.