We see a lot of this too. We offer a competitor to SaaS identity providers and some customers pick us because the software can run in a certain country. The customer can run it or we can run it (there are limits on the supported country in the latter case).
Global SaaS is awesome, but there are cases where data sovereignty trumps that and locality is a key feature.
It'll be interesting to see the sophistication of the applications that are built on top of Cloudflare, which combines both.
