Wow, what a title.
Ok, so we determined already what GeoIP wasn't used for, but as you can see, if you include MaxMind's database in your vcl configuration, and determine where the user is located you can easily see it isn't much of a stretch to quickly implement a Geo based load balancer.
The benefit of this is that the user gets served content from a physically close location, at worse case scenario you pool all the back-ends and get the user balanced not limited to country. The physically close location minimizes the time taken up by the transport layer of your web application.
This of course isn't probably going to be as good as Amazon's Route 53 technology, but you are going to move a big chunk of your audience to a server near them.
This makes varnish not only your first step out of the slow lane but several steps into a new world of speed and capacity, ensuring your product is being served up the fastest it can be in a way that could be even culturally relevant.
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