@rsohan, I agree with you, latency cannot be reduced, but, like I said, it can be
masked so that the end user does not notice it. Remember, the context here is a website.
Lets take the case of a website (Site A) hosted at any of the local data centers, and one hosted abroad (Site B).
Latency from me to Site A is 50ms, to Site B is 150ms. These will not change regardless what the developer does.
But, the developer can load the resources of a webpage in such a way that the end user feels as if the page loaded as if it was hosted locally. This is my first point.
Below are two screenshots to illustrate this point. Keep an eye on the onload time.
My second point, is the disk IO. It is one of the slowest parts of the stack both for the web server and for the database. If you make this fast, you gain more ability to fool the user into not noticing the greater latency.