Tally Systems Acquires Baranof Software, Forming Messaging Management Powerhouse
Company sees convergence between asset and messaging management

October 21, 1997 - Tally Systems Corp., the market leader in desktop asset management products, today announced the acquisition of Baranof Software, the world's foremost provider of electronic messaging management solutions. The combination of Baranof's well-known line of Check products with Tally Systems' award-winning Veranda Enterprise Messaging Reporter will immediately make Tally Systems the world's messaging management leader, offering the deepest and broadest portfolio of messaging management products available anywhere. The acquisition also sets the stage for future growth and synergy between asset management and messaging management, areas where both Baranof and Tally Systems are distinguished.

"Tally Systems is now the company that can tell you the most about what's happening on the desktop," said Ted Jastrzembski, CEO of Tally Systems. "We're starting to see convergence between desktop asset management and messaging management as organizations become more concerned with keeping end-users productive. We are now capitalizing on a technology base in both of these areas, which will help IT managers understand exactly what end-user computing resources they have in place, how those resources are being utilized, and how messaging systems are performing."

"End-user computing resource management is more than just hardware and software asset management as we know it," said Ben Littauer, President and founder of Baranof Software, and acknowledged pioneer in the electronic messaging industry. "It includes performance management as well, monitoring service level benchmarks that have a direct effect on business performance. With the combined resources of the two companies, and the long term potential of combining desktop management with messaging management, it made sense to work as one team. Both companies' customers will benefit greatly from our combined efforts."

Veranda and the Check product line will now be managed within Tally Systems as a messaging business unit, separate from the existing asset management business unit which manages Cenergy (a combination of Tally Systems' NetCensus inventory, CentaMeter metering, and WinINSTALL software distribution products), allowing each group to focus on their core competencies. These business units are expected to merge in the future.

"It makes a great deal of sense to combine electronic messaging management with desktop asset management," said Chris Selland, Director of Distributed Solutions Strategies at Yankee Group in Boston. "By enabling users to better manage their enterprise and end-user resources, Tally Systems is well-positioned to lead at the convergence of these two key elements of successful desktop management. They are enabling organizations to succeed in managing what has previously been unmanageable."

The analyst community has also been quick to point out acquisition benefits for Baranof and Tally Systems current customers. Joyce Graff, Gartner Group's Research Director for Electronic Messaging said, "As E-mail rises in critical importance to enterprises, there is a growing need for products that can help to identify network outages the moment they occur, or -- even better -- see them brewing before they occur so that the outage can be avoided."

David Ferris, President and founder of Ferris Research Group sees the leadership opportunity the acquisition affords Tally Systems. "Baranof is already a leader in this field, and its offerings will be further enhanced by Tally Systems' reporting and analysis tools. Likewise, Tally Systems' messaging management tools will be much stronger by adding Baranof's mail monitor and buoyed by Baranof's marketing expertise and presence in this specialized niche."

Customers are equally enthusiastic about the acquisition. "I think joining the two companies will be a real positive thing," said Chris Goulart, Manager of Messaging Architecture at Thomson Financial Services in Boston. "It will enable the customer base to take the managing and monitoring of messaging to a new height that those of us in the business have long awaited. The blend of the two companies' products is going to provide a true single vendor solution. It's really moving us forward."

In addition to its headquarters in Hanover, New Hampshire, and European offices in Dublin, Ireland, Tally Systems will add Baranof's offices in Watertown, Massachusetts, and Albuquerque, New Mexico, which will stay open and staffed with existing employees.

Tally Systems Corp. is the world's leading supplier of full-featured asset management products, providing packaged software solutions and service to improve management of end-user computing resources. Asset management products include NetCensus, automatic inventory for all your PCs; CentaMeter, software license metering and management; and Cenergy, which combines the inventory and metering products with WinINSTALL, effortless electronic software distribution.

Messaging management products include Veranda Enterprise Messaging Reporter, messaging management for email, internet and fax resources. The acquisition of Baranof Software adds the Check product line: MailCheck, the leading e-mail management solution worldwide; IP.Check, application and service monitoring for IP networks; and ModemCheck, remote access system monitoring and management.