A $1.5-million Internet security centre touted by the University of Calgary and JAWZ Inc. as a state-of-the-art tool to fight cybercrime has been shelved following layoffs and a corporate reorganization of the Toronto-based company, officials say.

The new E-Security Innovation Centre had been plagued by construction setbacks and financial troubles at JAWZ, which is facing a possible downgrading from Nasdaq unless it can boost its share price over $1 US in the next 90 days.

JAWZ and university officials huddled in Calgary last week to decide the fate of the centre, which was to anchor 2,400 sq. ft. of space in the new wing of the Alastair Ross Technology Centre in University Research Park.

“The future plans for the space are under review right now between the U of C and the Alastair Ross Technology Centre,” said Trent Johnsen, executive vice-president of e-business initiatives for JAWZ Inc.

“JAWZ has now really moved to an operational focus in light of the broad market conditions, and as part of that, JAWZ didn’t feel it was in our best interests to directly fund the leasehold improvements that were contemplated at the centre.”

The Calgary-founded company, which specializes in Internet and computer security software products, has pulled its $300,000-plus capital funding plan.

However, it will continue to work with the university in providing instructors and curriculum for information security courses.

The manager of the centre, which was to begin offering courses this month through the continuing education department, was let go in the recent cutting of 37 jobs throughout JAWZ Inc.’s operations.

JAWZ Chairman and CEO Robert Kubbernus said those job reductions were targeted at areas that “could not demonstrate a return on investment quickly.”

Tom Keenan, Dean of the Faculty of Continuing Education, says the situation with JAWZ is typical of the circumstances faced these days by many high-tech companies.

But the university is “definitely committed” to moving forward with the centre, he added, noting the concept has received strong encouragement from local police and RCMP.

“At one point, it was going to look like the Starship Enterprise, but it’s not going to look like that any more because the university doesn’t have the money and JAWZ doesn’t have the money,” he said.

“But the reality is that this idea is too good to let setbacks stand in the way . . . Nobody is sitting on a big pot of money nowadays, so we have to figure out a way to do it that’s lean and mean and does the job.”

Keenan says the Internet security courses are now expected to start in mid-March. “We have a course called Hot Issues in Computer Security that already has a bunch of people registered, so I’m pretty sure it’s going to be a go,” said Keenan.

While the faculty maintains an option on the space at the Alastair Ross Technology Centre, Keenan said: “We have lots of other places other than that building that we can hold classes in . . . it’s a big university campus.

“My own guess is that we’ll still do something in there (the Alastair Ross centre), but it won’t be quite as grandiose as the plans were — but it will still be functional,” said Keenan.

TELUS Corp. was also a founding sponsor of the centre, providing a $225,000 commitment, and Keenan says the university is now “trying to figure out what projects we should be doing with them.”

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