Cloud Computing: A bridge to technological development in Peru

Alonso Tenorio Trigoso, Manuel Castillo Cara
Faculty of Science Computer Science National University of Engineering Lima, Peru Email: altrigoso@gmail.coml manuel.castillo.cara@gmail.com

Jesus Enrique Lovon Melgarejo, Dany Joel Uca˜ nay Barreto
Faculty of Science Computer Science National University of Engineering Lima, Peru Email: jeslev4@gmail.com dado1024@gmail.com

Abstract—A new development in the industry of information technology offers the possibility of accelerating the economic and social development, even in times when resources are limited. Cloud Computing can harness the power of Internet. This creates massive economies of scale, lowering costs and substantially removing the technical complexities and long cycles of planning and implementation and improvement of systems. Cloud Computing is a technology that could play an important role in our education. With a cloud computing service would exist a greater ability to adjust the education system and facilitate the implementation of changes. Also drives collaboration between students and teachers, providing tools to make contributions together. It is also a way to foster a spirit of teamwork. Technology also helps to promote communication between schools, from universities to institutes and colleges. This would enrich the curriculum and knowledge sharing. This paper reflects this latter as a motivation for this project in our study center.

I. I NTRODUCTION The Economist in its special report of 16 pages of 25 October 2008 about Cloud Computing made a small analogy of the history of computers and how have been transformed from mainframe, the original platform of computation, suddenly defeated by minicomputers, and then opened the way for ultraportable notebooks from 8 to 11 inches screen size. The Special Report mainly states that the computation is taking a new perspective, while it is becoming more distributed is focused in activities that move the data center around the cloud or cloud collection. The computing power is taking a more ethereal look and it will be consumed where and when needed. The term ”cloud computing” emerged around 2006 in conferences, blogs, articles. It has

proliferated on the cloud so far around the IT that will become paradigm and possibly almost a new science, ”the cloud”. While the cloud is gaining popularity it highlights the importance of increasingly powerful and economic processors, more ubiquitous networks that results in the data center which become factories for computing services to industrial scale, the software is delivered as an online service and wireless networks connect more and more devices to the free and paid offer. A recent study published by Pen Internet American Life Project [1] referenced by The Economist reveals that 69 % out of 100 Americans connected to the Web use some sort of ”cloud service” including webmail (Gmail, Hotmail, and many companies who offer private email accounts) or data storage online. The most striking example is Google offering a suite of web-based applications such as Google Apps for office applications and everyday tasks or Google Maps for handling maps. The current computation is disaggregating into components or ’services’ in the jargon of IT and increasingly begins to speak of the ”internet of things” to refer to network access through all kinds of devices, including sensors, RFID chips [2], Bluetooth technologies and wireless technologies among them naturally WiFi, WiMax or LTE (Long Term Evolution in Communications) . Cloud computing is not only used by Internet common users- students, clerks, employees or engineers with desktop computers and physical network connections it is also used use by millions of people with all kind of devices that are connected to computer networks and also the aforementioned internet of things.[3]

When we talk about Cloud Computing we tend to think that is a new type of technology when it is actually a new model of provision of services, one of the biggest advantages is scalability, ie, able to meet very strong demand in the provision of a service, but very direct, immediate in time, with an impact on the management and with a cost that is almost flat, this orientation is scalability which will cause the end user perceives that everything works, everything goes fast, everything is easy and therefore your user experience is much more rewarding. [4] SOA(Service Oriented Arquitecture) is the soul of Cloud Computing, scalability allows make it aggresive and elasticity is implemented in both the model and the infraestructure [25] As technological principles requires a strong infrastructure virtualization layer (servers, storage, communications, etc). An advanced capacity in terms of provisioning IT resources, orchestration of these resources and a service orientation. In the cloud computing model there are different levels of services, mainly include: infrastructure, platform, software, virtualization and not forgetting the communication protocols Fig. 1.

development frameworks. Examples of PaaS providers include Google App Engine [9], Microsoft Windows Azure [10] and Force.com [11]. 3. Software as a Service (SaaS): refers to providing on-demand applications over the Internet. Examples of SaaS providers include Salesforce.com [12], Rackspace [13] and SAP Business ByDesign [14]. The business model of cloud computing is represented by Fig. 1. According to the layered architecture of cloud computing, it is entirely possible that a PaaS provider runs its cloud on top of an IaaS provider cloud. However, in the current practice, IaaS and PaaS providers are often parts of the same organization (e.g., Google and Salesforce). This is why PaaS and IaaS providers are often called the infrastructure providers or cloud providers [15]. Cloud Computing, as economic perspective is such a great oportunity, the overall cost of IT is determined not just by the cost of capacity, but also by the degree to which the capacity es efficiently utilized. We need to assess the impact that demand aggregation will have on costs of actually utilized resources (CPU, network and storage).

Fig. 1. Cloud computing: state-of-the-art and research challenges[25]

1. Infrastructure as a Service (IaaS): refers to ondemand provisioning of infrastructural resources, usually in terms of VMs. The cloud owner which offers IaaS is called an IaaS provider. Examples of IaaS providers include Amazon EC2 [6], GoGrid [7] and Flexiscale [8]. 2. Platform as a Service (PaaS): refers to providing platform layer resources, including operating system support and software

In the non-virtualized date center, each application/workload typically runs on its own physical server. This means the number of servers scales linearly with the number of server workloads. In this model, using servers has traditionally been extremely low, around 5 % to 10 % of the total of their performance[16]. Virtualization enables multiple applications to run on a single physical server within their optimized operating system instance, so the primary benefit of virtualization is that fewer servers are needed to carry the same number of workloads.

But how will it affects the economy? If all workloads had constant utilization, this would entail a simple unit compression without impacting the economy. Actually, however, workloads are highly variable over time, often demanding large amount of resources one minute and virtually none the text. It oppens opportunities up for utilization improvement via demand-side aggregation and diversification [17]. A. Economic Context In recent years, Peru is already feeling the effects in science and technology. Economy’s growth is not only because of prices of raw materials which are exported are subject to international market and are variable, but also by the studies in science and technology in our country [18]. Michael Porter, during his visit in Peru, noted that our growth was nothing extraordinary and that control of the growth came not from within the country, but was to many external factors that generate hazardous swings to make it sustainable. To reverse this situation, it’s needed to own scientific and technological development, enabling the growth’s sustainability, it should be from a successful state policy, and happily announced, which encourages the known spirit Peruvian entrepreneurial and innovative. Given the economic position and opinions of rating agencies, we now have the possibility of establishing strategic alliances with developed countries for technology transfer required, that lead us into a process of about 10 years to see result. B. Peruvian Market Opportunities Peru invested 0.15 % of its economy in science and technology, while other countries like Mexico, Chile and the U.S. invested in this area 0.44 % , 0.59 % and 2.60 % respectively. Considering that economic development and increased productivity are positively correlated to the development of science and technology, precautions must be simple, specific and applicable [19]. In this regard, the Research Institute Technoeconomy (Techno-Economy Research Institute - TRI) [20] conducted an analysis and concluded that applying a series of measures (involving a 50 % increase in the budget for science and technology) over a period of two years would double the productivity of companies and this could generate an increase of 3 % to 4 % in our economy. While it is said that the poor development of science and technology in Peru, the low state

investment in these, it should be noted that modern economies are dynamic, thanks to private initiative. The role of government is the regulator, not the protagonist. So what we have to ”wake up” is the private sector interest in science and technology. There are no very accurate studies on private sector participation in the development of technology, but IT is estimated to barely 0.03 %, while the state provides the other 0.12 %. It is necessary to restore the balance between the university and the company. In the past 40 years there has not been link between them in the field of science and technology. Businesses should directly fund research projects in science and technology in universities, on account of payment of taxes.Recently, it is allowing companies to spend on public infrastructure directly against their taxes. Take for example the case of software industry, with a turnover over 150 million dollars per year, of which approximately 35 million goes to taxes. This sum could be invested directly in university research projects to further develop the software industry itself. This amount can solve more than 200 projects at an average $175,000 per project. This refers only to the software industry, but also mining (of much controversy in our country) that could provide resources to universities to conduct research on mining issues, or fishing, textiles, agribusiness, among many other sectors. Knowledge is no longer a single issue. The graduate thesis should focus on achieving final products or services, built by a group of multidisciplinary professionals. The nature projects have been developed by groups of the same specialty. This is possible in research areas with a high level, but at the levels needed to support the development of science and technology in the country and link with the productive sectors, it must be multidisciplinary groups. Peruvian scientists should be provided with greater opportunities. Until August 2008 the Fund for Innovation, Science and Technology (FINCYT), through which the state gives grants between 100,000 to 200,000 dollars for some research projects have not spent more than 40 % of total budget because projects were not submitted. If a researcher cannot develop a project of 100 thousand dollars, nor shall make one of 1 million and less than 10 million [21]. On the other hand, always expected that funding is only for ideas, but the scientist-entrepreneur must be able to build their prototypes or first designs, so that the financing will serve to further research, build an advanced version of its prototype or even

bring it to mass production. In short, scientists require more proactive. Although the mortality rate of research is high, 3 successful projects in every 10 invested could be achieved. If there is not production research will not do much. It is the responsibility of universities to train professionals to be able to complete the virtuous circle of science and technology, which is set in world markets these products through mass production. Having these investigations only as prototypes doesn’t generates scientific or economic advantage to the country. C. Business Framework - Business Models ”Cloud Computing is saving between 30 % and 40 % due to reduction in costs in licensing and platform.” Alex Torres, Google Peru. ”In Peru, Cloud Computing is in its infancy, mainly due to lack of knowledge. If a company uses these applications efficiently increase productivity by 30 % ”Carlos Andres Lopez, General Manager of Digital Way, a company of Grupo Romero [22]. According to a recent study of 150 companies in the country, conducted by Marketing Consultants, only 14.7 % of Peruvian companies use cloud computing applications, but reveals that 48 % of firms surveyed planned to implement the Cloud in a period of two years. The Digital Way representing noted that cloud applications provide access to email information, storage centers, virtual environments and management systems, from any place and device as PC’s, smartphone, tablet, etc. ”The easiest example to explain is that in Peru there are seven million users of Hotmail, which is an email that works in the cloud. We also have seven million users of MSN, which is hosted in the cloud. And do not forget online games on the Xbox” Guillermo Guzman-Barron, Microsoft Peru. In Peru we have the worldwide launch of Microsoft Business Productivity Online Suite (BPOS), which provides access to cloud services such as Web conferencing, calendars, etc; which vary from $ 3 to 10 per month. Meanwhile Google offers Google Apps includes email, chat, office, etc. offering a free version with 7 GB of storage and 25 GB Premium without ads for $50 annually. Peru is ranked 106 of 146 countries in use of Information Technology, the study of World Economic Forum of 2012 (Global Information Technology Report).

In Latin America, Chile (39), Uruguay (44), Panama (57), Costa Rica (58) and Brazil (65). Peru only surpasses Venezuela (107), Paraguay (111), Bolivia (127) and Nicaragua (131), and we are even next to countries in Africa and the Middle East that exhibit poor performance in ICT. Most large companies are looking at the possibility of having solutions in the cloud. Currently about 1,700 companies are testing different versions of cloud services. The first implementation at Microsoft Online Services at regional level has been in Peru with the Grupo Romero, but in recent months, on average, every three days a new organization hires a cloud service. With the recent strategic alliance between America Mobil Group - Claro and Microsoft Corporation, small and medium entrepreneurs in Peru are able to access all applications available in Office 365. Claro available to its clients business productivity they can achieve greater efficiency, and therefore the optimization of their business. For Oscar Ferradas, Enterprise Sales Sute Director , as a result of this alliance of small and medium enterprises will be able to access the collaboration and productivity tools similar to those used by big companies, without the need for large investments in licenses and infrastructure [23]. ”Cloud computing has the advantage of flexibility as to manage workloads and manage processing increases without increasing their infrastructure.” Luis Torres, ex Microsoft Peru. ”We expect to grow so strong and contribute to Peru is a first world country, ” Paul Massis, Orion Solutions. II. I MPLEMENTATION C LOUD I NFRASTRUCTURE A. Infrastructure Due to the large display and worldwide reception of OpenStack we have opted for choosing this infraestructure (IAAS) and implement it to our college project at ”National University of Engineering” (UNI) . OpenStack is a project supported by major world players in the Cloud (NASA, RackSpace, Dell, Cisco, Intel etc.) that fits into the category of IAAS, being the nearest commercial alternative service called AWS (Amazon Web Service) from Amazon . [24] OpenStack makes its services available through Amazon EC2/S3 compatible APIs and hence the

client tools written for AWS can be used with OpenStack as well. There are 3 main service families under OpenStack: • Compute Infrastructure (Nova) • Storage Infrastructure (Swift) • Imaging Service (Glance) When we started this project we acquired two servers with the following characteristics: • Server I, II: Clouduni 1-2 • Model: IBM Quad core Xeon 2.0 • Ram: 8GB DDR Server III, IV: Clouduni 3-4 Model: HP Proliant Xeon E5540 4 cores 2.53Ghz (2 servers) • Ram: 2GB DIMM With this basic infrastructure we hope to expand in the future and once completed our investigation stage start implementing services to our college Fig. 2. As in our project we initially have 4 basic servers we decided to use this infrastructure, using one server for each OpenStack service, with the chance that we expand more resources. Nova is the Computing Fabric controller for the OpenStack Cloud. Nova offers all services needed to support computing instances and their lifecycle, but no virtualization. Nova also interacts with the hypervisor supported. [24] Swift is a storage system with two main features, is highly massive (capable of storing billions of objects in distributed nodes to reach several petabytes) and highly redundant, so we can say it would be the equivalent of Amazon S3.[24] Glance is a OpenStack Imaging Service is a lookup and retrieval system for virtual machine images.
• •

Cloud computing in education has great potential not only of access to education as a fundamental right of every human being, but open access to knowledge without language restrictions, space or time. Every day the technological advancement of this knowledge society will bring new tools, resources and services that may be used in education and teachers must keep our minds opens to explore and find pedagogical usefulness of these advances toward a better education. To provide computer services in the cloud from education, we must change our optical about it. This model of education requires changes its limitations, one of which is to be based education and skills development based on experience and appropriate and relevant use of TICs as a tool to support education. There are many tools and resources that cloud for education offers today, but which of these tools are really useful in education and how to make them useful, below in Table No. 1 shows the main tools and resources that cloud computing may offer in our project[26].

B. Services What kind of services we have in mind to provide for the development of cloud computing at the National University of Engineering? Cloud computing in education is a conception that seeks not only to help students acquire and containing mechanically, but is intended to help you organize your thinking, to relate it to make sense of and apply to your environment. In other words, looking to learn to think. Cloud computing in education requires a change in attitude by the teacher. Now days, teacher must provide information and resources that encourage the student to define and construct their own knowledge.

We summarize here the main advantages, which are: • You can use any Internet-connected computer. • Not dependent on a particular operating system. • Accessible from any browser. • The information is always available. • No storage devices are needed. • Using tools of great simplicity. • Free tools the vast majority. • We can interact with multiple applications at once. • All users can work simultaneously on the same content.

improve the labor supply quality work on each in different information technologiess (IT’s). As students, we believe there is a large field of research in this sector that is worth giving an emphasis, and the necessary importance to use as a tool to improve society, not only in a business field but also science and education. ACKNOWLEDGMENT This paper has been prepared by the Research Group ”CloudUni” of the Faculty of Science, National University of Engineering; and special thanks for the revisions to Ms. Maria Elena Martinez-Acacio Alonso and Dr. Oswaldo ´ n. Velasquez Casta˜ no R EFERENCES
[1] IDC The Economist of Virtualization: Moving Toward an Application- Based Cost Model, November 2009. [2] Radio Frequency Identification, http://www.rfid.org [3] Sander van Vugt, Beginning Ubuntu Server Administration: From Novice to Professional (Expert’s Voice), 2008. [4] Mark I Williams, A quick start guide to Cloud Computing, moving your business into the cloud, Julio, 2010. [5] George Reese, Cloud Application Architectures: Building Applications and Infrastructure in the Cloud (Theory in Practice (O’Reilly)), Paperback - Apr 10, 2009. [6] Amazon Elastic Computing Cloud, http://aws.amazon.com/ec2 [7] Cloud Hosting, CLoud Computing and Hybrid Infrastructure from GoGrid http://www.gogrid.com [8] FlexiScale Cloud Comp and Hosting http://www.flexiscale.com [9] Google App Engine http://code.google.com/appengine [10] Brooks D et a Power microarchitecture Design and modeling challenges for the next-generation microprocessors, IEEE Micro, 2000. [11] Cloud Platform Force http://www.force.com [12] Salesforce CRM http://www.salesforce.com/platform [13] Dedicated Server, Managed Hosting, Web Hosting by Rackspace Hosting http://www.rackspace.com [14] SAP Business ByDesign http://www.sap.com/sme/solutions/businessmanagement/ businessbydesign/index.epx [15] Microsoft The Economics of the Cloud November 2010 [16] Armbrust - UC Berkeley Technical Report Above the clouds: a Berkeley view of cloud computing, 2009 [17] Michael Armbrust Above the Clouds, 2010, Pag. 14. [18] Juan Felix Enrique Pasco Ciencia Tecnologia en el Peru, http://www.conida.gob.pe/ [19] CIO, Peru http://cioperu.pe [20] Techno-Economy Research Institute http://www.technoeconomy.com/ [21] Agencia Digital July 2002 http://www.agenciadigital.pe [22] Jose Mendoza Interview, http://teknolosys.com [23] Julio Santos Fuertes Cloud Computing, herramienta de inclusi´ on digital para empresarios, Junie 2012 [24] OpenStack, Api Documentation http://docs.openstack.org/diablo [25] Qi Zhang · Lu Cheng · Raouf Boutaba Cloud computing: state-of-the-art and research challenges, [26] Ariel Adolfo Rodr´ ıguez Hern´ andez Educacion en la nube, Editorial SantaAna, Pag. 8.

Fig. 2. Infraestructure -Research Group CloudUni, Lima-Peru

III. C ONCLUSION Cloud computing is a new type of service that has been strongly developing in recent years and certainly has opened a new field of research in what is IT’s and with a strong impact on the issue of energy consumption and security online. Due to that reasons in this paper we have wanted to give a vision in broad strokes of what has been done at the National University of Engineering, the type of infrastructure that we use and the type of service we are offering at first, and then expand if we can get favorable conditions. Cloud Computing is still a little-known issue in Peru. Small and medium enterprises still refrain from use due to ignorance on the subject. For this it is necessary that cloud providers take the lead and establish marketing strategies that include sensibilization campaigns about the opportunities and benefits of Cloud Computing as a solution to improve the competitiveness of enterprises, in order to educate users on this issue and encourage the interest and the participation on and use of Cloud Computing in Peru. Educative institutions as well as research and development organizations on private and public sector, can drive to generate an individual capacity to promote national human resource use in software manufacture, applications and services designed to

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