Unfortunately it's difficult and expensive to scale those traditional solutions to the modern world of billions of internet users located all over the world. It's still quite slow to access a server on the other side of the globe. It's less noticeable for an american user accessing an american company's resources.
Does it matter for 90% of business?
I will say no, the vast majority of business is rather localized for very good reasons (as a starter, language/culture/legalese) so it is an unnecessary "feature" most of the time.
The reality is that manager drank the Kool-Aid and wants to pretend that they are Google/Facebook or the likes but almost no one else has this kind of scale.
Outside of tech behemoth nobody need that cloud bullshit.
