Avaya Quick Edition Version 3.1

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1 Reference Code: TA001306NAC Publication Date: August 2007 Author: Sarah Burnett TECHNOLOGY AUDIT Avaya Quick Edition Version 3.1 Avaya BUTLER GROUP VIEW ABSTRACT Avaya Quick Edition is the enterprise-grade communications solution that is designed for small business or branch offices of larger organisations. A Voice over IP telephony solution, Quick Edition operates in a distributed manner without a central point of control and likely point of failure, which builds redundancy and resilience into the telephone system. Quick Edition is easy to deploy, maintain, and administer. It is backed up by support from Avaya, a leader in its chosen markets. However, the company faces intense competition from historical competitors and new entrants in the enterprise-communications arena. Quick Edition allows the company to leverage its technology to tap into a new segment of the market and build relationships with more service providers. KEY FINDINGS Scalable and resilient solution. Large installed base and ecosystem of partners. Distributed system that eliminates central control and likely failure points. Designed for small business or branch offices of larger organisations. Increases Service Provider choice. Provides SMBs with access to new low-cost Internet Telephony Service Providers. Connects into existing LAN and WAN. No on-line training is provided for users. LOOK AHEAD Short-term plans for product enhancements include embedded music on hold, improved interoperability with Session Initiation Protocol (SIP) Service Providers, increased call pickup capabilities, and automatic-call routing. Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 1

2 FUNCTIONALITY Product Analysis Avaya Quick Edition is a simple but sophisticated telephone system for small businesses or small branch offices of larger enterprises. It provides customers with a rich-communication capability that includes professional call handling and mobility features, voic , and auto attendants that help small offices provide better interfaces to their customers. To simplify set-up, configuration and use, Quick Edition has intelligence built into the phones themselves. Phones can be added by simply connecting them to the network and they configure themselves. There is no centralised equipment to purchase, set up, or manage; thereby reducing the total cost of ownership compared with traditional Private Branch exchange (PBX) systems. The costs of calls are also reduced thanks to the ability to route voice traffic over a Wide Area Network (WAN) or the Internet. Quick Edition s value proposition is that it delivers a future-ready system that can be scaled up for the expanding small business; and an easy to manage system that provides a rich customer experience. From a customer point of view, Quick Edition provides access to new low-cost Internet Telephony Service Providers, allowing them to benefit from better pricing and service options. The product also offers advantages to the service providers by reducing the requirement for site visits, helping them to become more profitable with easy fault diagnosis and resolution. Quick Edition also provides a platform that can be used for new service bundles and opportunities for new revenue streams. Figure 1: Small Independent Office Configuration Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 2

3 Product Operation Product functionality includes call conferencing, forwarding, redirecting, and flexible options for tele/home workers with extensions that work at home as if the user was sat in the office. Quick Edition components plug into an existing 10/100 switched Local Area Network (LAN) infrastructure. No pre network assessment or configuration of Quality of Service (QoS) is required. The phones will configure themselves automatically activating all basic functionality including voic and auto attendant with minimal configuration. Following this, the system can be customised (for example, configuring Groups or configuring external lines); a simple administration tool can be accessed via a standard Web browser. Quick Edition can be deployed using two different configuration architectures. The first shown in Figure 1 is a small independent office configuration. In this configuration the Quick Edition phones are plugged into the LAN. The phones have 2-port switches incorporated, which allows them to be simply patched-in at the user s desk using the existing PC cabling with the PC connected to the back of the telephone. The system can be configured to make calls over a SIP trunk connection of a compatible Service Provider. These in the UK include VoiceFlex and Gamma Telecom. The addition of a Quick Edition Gateway would enable calls to be made via the local Public Switched Telephone Network (PSTN) connection either via analogue or through Integrated Services Digital Network (ISDN) trunks at Basic Rate Interface (BRI) service level that is intended for the home and small enterprises. The second configuration option is shown in Figure 2. This is the recommended set up to connect a small office to a central site via a SIP Trunk connection. At each remote office, the phones are connected to the LAN as previously described. Furthermore, each small office is connected to the central site via Avaya s SIP Enablement Services (SES) platform for call routing between the sites and to/from the central site. This allows direct dialling between branches and head office to take place over the WAN. The configuration also supports branch-to-branch telephony functions for call conferencing, transfer, forward, and holding. Should the WAN fail, a Quick Edition Gateway provides a resilient backup with a local connection to the PSTN via analogue or BRI ISDN. Quick Edition uses peer-to-peer technology whereby all the phones connect into each other rather than into a central PBX server. This eliminates a single point of failure of traditional systems and each phone backs up the others features, so if one phone fails the others continue to work and the users voic box continues to actively receive messages. A Quick Edition small-office phone system scales by simply plugging additional phones into the system. A maximum of 20 phones can be supported on any site, although on a case-by-case basis Avaya may support installations of more phones (up to 40) subject to certain configuration criteria being met. All system and user data can be backed-up and restored. Data can be securely stored in any Microsoft Windows addressable file space. Product Emphasis The product emphasis is on a rich set of communication features and functionality with a low total cost of ownership to very small businesses (less than 20 employees) and small branch offices of enterprises. Quick Edition is aimed at providing customers with a future-ready system that will save them money through new VoIP services, whilst allowing them also to connect to the PSTN in the traditional way. The company faces intense competition from historical competitors and new entrants into the enterprise-communications arena. Competition in the emerging IP telephony systems market is severe from the providers of voice communications systems as well as from data networking companies. However Avaya continues to innovate through creating new products and applications to maintain its market share. Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 3

4 DEPLOYMENT Installation of Quick Edition is typically carried out by an Avaya reseller. However, in some cases the system might be installed by a technically confident end-user. Installation can be done and configured in a matter of hours in a small office with an existing LAN. A modular approach can be used for deployment as the system can be scaled up incrementally. This can be achieved on one phone at a time or on a larger scale by connecting additional Gateways to the LAN to add further PSTN line connections. System administration and re-configuration is generally carried out by the Avaya reseller, with very little resource requirements from the customer. System re-configurations (e.g. changes to call flows, re-mapping of external lines) are usually performed by the Avaya reseller who installed the system; these can be done remotely using the Web-management facility. Avaya provides training to distributors and resellers through the on-line training programme called Avaya University. Separate courses are available for sales and technical staff. End-user training is not provided, as the phones are designed for ease of use. However, Butler Group believes that customers would benefit from a basic on-line video that would demonstrate the mix of functionality provided by the phones. Figure 2: Small Office to Central Configuration Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 4

5 Technical support is usually provided to the customer by the Avaya reseller. Avaya in turn supports its distributors and resellers through an established escalation procedure. In addition, Avaya is able to directly offer remote technical support plus parts replacement via a service offer that can be sold to end-users by Avaya s channel partners. Quick Edition only needs a 10/100 Ethernet LAN and Cat5 cabling. In addition, Quick Edition may run on legacy 10Meg switched networks, although there may be the need to configure QoS features if data traffic is high. Integration with legacy-analogue, plain old telephone service phones, is possible using the A10 Analogue Telephone Adapter. These connect analogue phones to the Quick Edition system. Installation of Quick Edition could simplify telephony-based business procedures. The Auto Attendant and voic functionality could mean that staff that were once dedicated to the handling of incoming calls as a full-time job can be redeployed elsewhere in the business. The risk with deploying VoIP telephony is the dependence on the LAN which means that any problems with the LAN could result in problems with voice traffic too. The standard part of the offering is the Quick Edition phones (4610 and 4621). Optional components are the Quick Edition Gateways (G11 and G20) and the Analogue Telephone Adapter (A10). PRODUCT STRATEGY The target market for this product is small businesses and branch offices of larger organisations with 20 phone-users or less. Additionally, the product is most suited to particular verticals such as Professional Services firms (e.g., doctors, accountants, lawyers, engineers, architects, financial services) and Retail. The typical customer requirement is an initial need of less than 10 stations with the potential to grow to up to 20 stations. Return on investment can be realised from a combination of factors: cheaper calls, flexible routing, and ease of administration. Quick Edition enables the end-user to take advantage of Session Initiation Protocol (SIP) trunking at a fixed-price from their service provider allowing much cheaper outgoing PSTN calls. The system provides flexibility that allows traffic to be routed away from the PSTN and over Internet-type connections to more than one branch office or other locations where employees may be working away from the office. Legacy analogue systems typically rely on central servers or control boxes with specialised programming interfaces. These require skilled resources for administration tasks. Quick Edition s in contrast is easy to administer and according to the vendor, tasks such as adding users, moving, or other changes to the system, can be carried out by non-technical users. The route-to-market is primarily through Avaya partners, but in larger enterprise installations it may also be sold directly to end users. Quick Edition is sold on a one-off purchase price. To connect a Quick Edition remote site to Avaya SES at a central site, a license is required for SES for each SIP trunk connection required (e.g. for individual extension, to groups, or to the Auto Attendant). Each license requires a one off payment of approximately US$30 to US$50. Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 5

6 The typical installation starts with six Quick Edition phones and a single Gateway. This would cost around US$2750 (Avaya List Price) in hardware costs. An Avaya reseller might charge around US$500 for installation. Annual maintenance and support is provided through Avaya resellers. They offer a range of different annual maintenance and support services. Typical costs for these could be around 10%-15% of the initial installation cost per annum. Furthermore, Avaya offers its own post-sales support package that gives the end-user access to a remote technical support hotline, plus faulty parts replacement. This would cost approximately US$300 (Avaya List Price) per annum for a typical installation of 6 Quick Edition phones and a single Gateway. In general, Avaya releases software enhancements approximately once every six months. At present software releases are not charged for, although this policy may change. It is also possible that an Avaya business partner may choose to bundle the software upgrade into some kind of customer-care package, so offering better revenue opportunities for the business partner and a closer relationship with their customer. Short-term plans for product enhancements include embedded music on hold, improved interoperability with SIP Service Providers, increased call pickup capabilities, and automatic call routing. COMPANY PROFILE Avaya has its corporate headquarters in Basking Ridge, New Jersey, USA and has presence in over 90 countries worldwide. The European headquarters are in Frankfurt, Germany. Avaya was first incorporated in October 2000, when it was spun off from Lucent Technologies. For more than a century prior to that Avaya was a part of Western Electric, AT&T, and Lucent. Avaya is publicly-owned and is listed on the New York Stock Exchange under the symbol AV. The company employs approximately 20,000 people worldwide; 54% in North America, 36% in Europe Middle East and Africa (EMEA), 3% in Central and Latin America (CALA), and 7% in Asia Pacific (APAC). Key clients, include ABN Amro AOL, BMW, CommerceBank, The Home Depot, Hyatt Hotels, Morgan Stanley, and Whirlpool. The installations at these customer sites are at least regional and in most cases global with hundreds and thousands of users. Many have standardised on Avaya as their communications platform of choice across the world. Additionally there are currently over 1000 customers using the Avaya one-x Quick Edition product globally following its launch nearly a year ago. Table 1: Financial Details Year ending Revenue (US$ Million) 5,148 4,902 4,069 Change on Previous Year (%) Total Net Income/(Loss) (US$ Million) Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 6

7 SUMMARY Avaya has designed, built, and managed communications networks for more than one million organisations worldwide, including over 90% of the Fortune 500, as well as mid-market enterprises. With Quick Edition, Avaya is targeting very small organisations to enable them to benefit from the rich functionality that is made possible by VoIP telephony. With Quick Edition the company can now serve the market irrespective of customer size. In Europe at least, that means reaching the remaining 99.9% of businesses that it could not reach before. The solution exploits existing and new infrastructure, enabling organisations to evolve to a converged environment. As such, Butler Group believes that Avaya should be on an organisation s short list when contemplating migration to IP-based communication solutions. Table 2: Contact Details Avaya Inc. 211 Mount Airy Road Basking Ridge N.J USA Tel: +1 (908) Fax: +1 (908) Avaya UK Avaya House Cathedral Hill, Guildford Surrey, GU2 7YL UK Tel: +44 (0) Fax: +44 (0) Headquarters Europa House, 184 Ferensway, Hull, East Yorkshire, HU1 3UT, UK Tel: +44 (0) Fax: +44 (0) Butler Direct Pty Ltd. Level 46, Citigroup Building, 2 Park Street, Sydney, NSW, 2000, Australia Tel: + 61 (02) Fax: + 61 (02) Butler Group 245 Fifth Avenue, 4th Floor, New York, NY 10016, USA Tel: Fax: For more information on Butler Group s Subscription Services please contact one of the local offices above. Important Notice This report contains data and information upto-date and correct to the best of our knowledge at the time of preparation. The data and information comes from a variety of sources outside our direct control, therefore Butler Direct Limited cannot give any guarantees relating to the content of this report. Ultimate responsibility for all interpretations of, and use of, data, information and commentary in this report remains with you. Butler Direct Limited will not be liable for any interpretations or decisions made by you. Butler Group. This Technology Audit is a licensed product and is not to be photocopied Page 7

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