Comparison of Panasonic NCP1000 vs. Avaya IP Office 500 For the Small- to Medium-Sized Business Market December 2008

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1 Comparison of Panasonic NCP1000 vs. Avaya IP Office 500 For the Small- to Medium-Sized Business Market December 2008 This report summarizes the major advantages of NCP1000 over IP Office 500 for the small to medium business customer. Differences are compared graphically in terms of price-value and are described in the text. The summary also compares average cost per station for the two systems.

2 Panasonic KX-NCP1000 vs. Avaya IP Office 500 Panasonic s KX-NCP1000 and Avaya s IP Office 500 are converged IP PBX systems that target the small to medium business market. The Panasonic KX-NCP1000 is a single, rack-mount unit designed for businesses with up to 108 users, with a target of less than 60 users. It is based on the company s earlier KX-TDA and KX-TDE software. The NCP1000 supports 104 total extensions (108 using DXDP) with maximums as follows: 64 IP phones (MGCP-based), 64 standard SIP phones, 40 digital proprietary phones, 36 analog phones, and 64 DECT wireless phones. Trunk capacities include 32 SIP/H.323 trunks, two ISDN PRI interfaces (46 channels), and 16 analog trunks. For customers with existing KX-TDA or KX-TDE systems, all Panasonic handset devices, CTI software and voic units can be migrated to NCP systems, as well as some desktop software. DSP system boards and option cards like Door Phone, Echo and IO Card also migrate into the NCP. The NCP1000 can accept all NCP500 cards except for the smaller NCP500 s main processor. Targeting modular growth applications, the Avaya IP Office 500 encompasses a server, media modules, trunk interface cards and a range of application options. IP Office 500 has two versions, a basic Standard Edition that supports a standalone office of up to 32 users with limited functionality and a feature-rich Professional Edition that supports up to 272 users. A 45-day Free Application Try-It-Buy-It Program allows customers to trial applications before purchasing. The basic version includes IP Office Standard Edition software, a subset of the full IP Office functionality. A Professional Edition upgrade adds full IP Office functionality and scalability. Slot configuration is structured; for example, only four slots are available with the Standard Edition software. For additional capacity, the Professional Edition software must be activated (via license key) to take advantage of eight expansion module slots. IP Office modules are compatible among all IP Office models but are not migratable to other Avaya systems. To reuse cards from an earlier IP Office system requires purchasing the IP Office Legacy Card Carrier, although it does not support all legacy IP Office 400 cards. Earlier Avaya Partner, Merlin or Definity system cabinets and circuit cards cannot be reused with IP Office, and several phone models are not supported. Almost 39% less expensive for a typical 50-station configuration than the Avaya IP Office 500, Panasonic s NCP1000 is a much more cost effective small and medium business solution. With its scalability (272 users) and the need for the more expensive Professional Edition to accommodate 50 users, the Avaya system is overpriced for the NCP1000 s target market of less than 60 users. The systems are compared on the basis of features important to small businesses. For each feature, a graph shows the trade-off a customer can make between cost and the features that they want or need.

3 Messaging The Panasonic NCP1000 has three voic /unified messaging options, including a built-in capability at no extra cost. (Panasonic also offers support for third party conventional, analog voic systems.) The KX-NCP main processor card supports Enhanced Simplified Voice Messaging (ESVM), Panasonic s 2-port voic solution. This built-in ESVM2 gives basic voic functionality, including recording and storing personal greeting messages, message waiting lamp, storing, playing back and clearing messages (up to 125 greeting and voice messages with a maximum total recording time of 120 minutes). Alternatively, the optional ESVM4 card offers additional recording and outgoing message handling capabilities (500 messages and 120 minutes). For more advanced capabilities, the system can digitally integrate with Panasonic's KX-TVA voic server. In addition to basic functionality, KX-TVA systems enable integration, auto attendant, call screening, live recording Caller ID features (Name Announcement and Personal Greetings) and other standard features that will benefit a business bottom line. KX-TVA messaging platforms scale to 64 mailboxes (KX-TVA50) or 1,000 mailboxes (KX-TVA200). The Avaya IP Office 500 has several voic /unified messaging options (three Avaya options plus two Esnatech third party options). Default IP Office 500 Standard Edition software does not include voice mail as a standard feature; Embedded Voic (4 ports) can be added via an optional card upgrade. Embedded Voic is very basic and does not support broadcast, call screening, live record and other popular features, although the ability to forward voice mails and message alerts to was recently added. Professional Edition software supports Voic Lite (2 or 4 ports) for standard voice mail functionality or Voic Pro (up to 30 ports) as an option (Standard Edition users cannot use Voic Lite or Voic Pro). Voic Lite also allows users to copy or forward voice mail as but does not support some popular voice mail features available on Panasonic s KX-TVA platform like auto attendant, live call recording, reporting and support for centralized voic . Voic Pro, through a software upgrade and the purchase of an external server, adds a GUI interface, auto attendant, queue announcements, call recording, Campaign Manager, 20-plus language prompts, centralized voice mail and increased capacity. It also provides a low-cost basic unified messaging solution with voice mail being forwarded to any MAPI-compliant application as a.wav attachment. Avaya recently introduced the more robust Unified Messaging Service to Voic Pro, adding IMAP compatibility and web browser access to voice mail messages. Further options can be included like Microsoft Exchange system integration and text-to-speech. Panasonic s built-in ESVM voic for the NCP1000 is more economical and easier to implement for small and medium businesses. ESVM provides two ports of voic out of the box at no incremental cost and provides the basic voic functionality most businesses require. Voic is always optional and at incremental cost for Avaya users, and Avaya users must upgrade to the more expensive Voic Pro (which also requires a separate server) when their needs go beyond 4 ports.

4 Desktop Productivity The Panasonic NCP1000 comes with Communication Assistant Basic software (CTI) preinstalled on the main processor card; the first five users are free with additional user licenses for purchase. For ease of installation and management, Communication Assistant does not require a server. Communication Assistant Basic gives users desktop information on other employees presence, chat capability, call history, a contacts database and CRM integration. The optional Communication Assistant Pro (also installed in the main processor card) adds more advanced presence capabilities, more capacity to call histories and contacts databases and compatibility on Windows Mobile devices. The mobile functionality adds unified communications features much in demand by small businesses like financial, insurance and real estate firms. The Avaya IP Office 500 offers a Phone Manager application, enabling the user to control telephone functions from a desktop PC. Three versions are available: Phone Manager Lite, Phone Manager Pro and Phone Manager PC Softphone (VoIP mode). Phone Manager Lite is a free application for a networked PC that can be used in conjunction with an analog telephone, a digital terminal or an IP phone. Users can visually access telephone functions on the PC, including inbound/outbound call handling, conference buttons and control, extension feature control, configuring phone preferences, Caller ID logs, speed dial, busy lamp field (15) and voice mail collection. Phone Manager Lite also integrates with Microsoft Live Communications Server (LCS) for presence information and instant messaging. Phone Manager Pro adds a compact mode with a smaller screen interface and integration with contact management packages (Microsoft Outlook, GoldMine, ACT! and Maximizer) for screen pops, voice mail control with Voic Pro and a personal phone number directory. Other specific features separate incoming/outgoing call logs, voice mail box control (voic messages are listed under the Messages tab, allowing users to scan the list of messages before listening to them ) and incoming call scripting. Users can create up to nine voice mail greetings (via Voic Pro); specific greetings can be played according to call type. A Personal Auto Attendant gives callers a menu of options or breakout options (to leave a message, speak to a receptionist or transfer to a cell phone, for example). Targeted at the mobile user who relies on a laptop computer for telephone functionality, Phone Manager PC Softphone offers the same functionality and GUI interface as Phone Manager Pro; however, no phone terminal is needed since the user has a headset/microphone connected to the PC s soundcard or USB port. Panasonic s Communication Assistant Basic provides the desktop productivity tools that small and medium businesses need and use preinstalled on the NCP1000. With five free licenses it is an economical starter package. Avaya s Phone Manager Pro, while providing the important mobile device support for small businesses, is also too feature rich and too complex to administer for many smaller businesses. Phone Manager requires integration with Microsoft Live Communications Server (LCS) for presence information and instant messaging, while Panasonic s Communication Assistant Pro supports mobile applications and is conveniently installed on the main processor card.

5 Mobility The Panasonic NCP1000 supports an in-building wireless solution via cards housed in the main unit, including optional 2.4 GHz or DECT Cell Station Cards. By installing cards and deploying cell stations throughout the building, the NCP1000 can support up to 64 assigned DECT wireless handsets. For even more flexibility, a wireless handset can share an extension with a wired telephone. Panasonic offers several models of 2.4GHz and 1.9GHz DECT wireless handsets to meet varying business needs. Panasonic customers can also take advantage of an IP Soft Phone as well as a Windows Mobile Device running Communication Assistant Pro software for advanced presence capabilities. The Avaya IP Office 500 supports IP DECT, 900MHz (Digital Wireless), WiFi (IP Wireless) and mobile twinning solutions. Avaya IP DECT supports up to 120 handsets in different offices via a WAN connection. In EMEA and APAC this system supports the 3701 and 3711 handsets. In North America, Avaya supports only the 3711 DECT handset. Avaya s Digital Wireless uses the 902 to 928 MHz band and uses Avaya s 3810 digital wireless telephone (maximum of five per zone). Avaya s IP Wireless solution is a voice over Wireless LAN solution that use Avaya s 3616, 3620 and 3626 phones (from SpectraLink) over b and in conjunction with the Avaya Voice Priority Processors to help ensure voice quality. Alternately, 3641 and 3645 phones (also from SpectraLink) support several WiFi standards (802.11a/b/g). Twinning is an optionally purchased license on R4.0.7 or higher so that a secondary phone can be an internal extension on the IP Office system or an external phone such as a cell phone simultaneously rings. External twinning does not support all the call types supported by internal twinning: coverage, intercom, returning transferred/held/parked, paging and follow me calls cannot be twinned with an external phone. However, Avaya continues to improve upon this functionality. In August 2008 Avaya s Mobility Feature license added two wireless enhancements Mobile Call Control, enabling users to dial star codes to hold, transfer, toggle or conference calls, and a one-x Mobile Client for Small Business, a new graphical user interface for wireless Windows Mobile 5/6 and Symbian Single-Mode intelligent devices that lets users manage calls through IP Office with one-number service. Both must use ISDN BRI/PRI or SIP trunking. Both vendors offer a mobility solution; however, Panasonic provides a complete in-house wireless solution with less equipment (making it easier for smaller businesses to implement and maintain) and goes beyond Avaya in functionality in its support of Windows Mobile devices and mobile presence capabilities without the need for optional and expensive licenses.

6 Telephones The Panasonic NCP1000 supports a variety of analog, digital and IP phones, including Panasonic models and thirdparty SIP hard/soft phones from a number of manufacturers, including snom, Linksys, Polycom and Grandstream. The compatible KX-TDA0350 IP softphone emulates the KX-NT136 set. Earlier Panasonic proprietary IP phones, digital and electronic phones can also be used. Panasonic s DECT and 2.4 GHz multi-cell wireless phones, the KX-T7600 digital phones and the KX-T7000 series are also compatible. Panasonic s high-end IP phones have some advanced functionality such as self-labeling displays and Bluetooth connectivity. For specific comparison in a new customer sale, consider Panasonic s KX-NT346 IP Phone versus Avaya s 5621SW IP Phone. Both have comparable buttons and display, PoE support, dual-port Ethernet and add-on modules for extra keys as well as popular features like conference, speakerphone/mute, speed dial and distinctive ringing that would be important to a small business customer. The Panasonic phone, however, is priced lower at about $240 (average street price) compared to about $344 (average street price) for the Avaya phone. The Avaya IP Office 500 supports a wide variety of analog, digital and IP phones, including earlier models supported on legacy Merlin MAGIX and DEFINITY systems. Digital phone support includes selected Avaya 24xx Series, Avaya 54xx Series, Merlin MAGIX 4400, DEFINITY 6400 and Avaya-Tenovis T3 Series. In general, Avaya s IP 4600 Series phones and 24xx digital phones are compatible across the IP Office, DEFINITY and Communication Manager systems, but IP Office R4.0 (or higher) will not support 4606, 4612, 4624 IP phones, which may mean an existing Avaya customer cannot reuse this investment. Older Partner key system phones are not reusable on IP Office. Variants of Avaya's 4600 series phones (for IP Office called the 5600 series) and of the 1600 series phones (for IP Office called the 1700 series) are designed specifically for IP Office and are not compatible with Avaya s larger Communication Manager platform. Depending on system size, features and deployment of IP, phones can represent up to 80% of the cost of a new system. Panasonic s IP telephones are slightly less expensive and comparably featured to Avaya s IP sets. Panasonic offers a much broader line of digital sets at both entry level and mid-featured functionalities at comparable price points. Panasonic also has an advantage in terms of investment protection. While Panasonic sets are compatible with a wide range of its phone systems, Avaya s 5600 series IP sets and new 1700 series IP sets are unique to the IP Office 500, an important consideration for multi-location small businesses that typically re-use phone sets across their locations.

7 Call Center The Panasonic NCP1000 includes key functionality for a small call center at no extra cost. An incoming call distribution (ICD) group can provide a small call center with call queuing, wrap-up, member login/logout, distribution to longest idle agent and VIP Calling (can assign priorities to call groups). Uniform Call Distribution (UCD) distributes calls evenly to the extension following the last extension to answer a call and supports 128 groups with 128 extensions per group. A supervisor display extension can be assigned to monitor call statistics like the number of calls waiting and to change member status. Cellular phones can be part of an ICD group (with a maximum four per group). For reporting, Panasonic customers can add the KX-NCV200 two-in-one system that combines an ACD Report Server and the KX-TVA200 Voice Processing System, enabling both call center reporting and voice processing in a single system. Reports (agent and group) based on incoming call data, including real-time call information such as extension status, call type and telephone numbers, are displayed to the ACD Report Client Windows-based PC. Panasonic customers will also benefit from a new partnership in the area of call center. While the KX-TDA, KX-TDE and new KX-NCP systems already include basic, small call center functionality at no extra cost, the systems can now be integrated with a call center suite from Poltys. The Avaya IP Office 500 Standard Edition optionally supports Compact Business Center (CBC), an entry-level, voiceonly application for small informal call centers (2-15 agents, 3 groups, historical reports, real-time statistics, performance indicators). CBC provides visual alarms on lost calls, trunk utilization, queued calls and available agents, but also provides notification to business staff and system administrators to increase trunk capacity or add agents. A license upgrade to Professional Edition supports the optional Compact Contact Center (CCC) client/server software for up to 75 agents and 21 supervisors. CCC incorporates multi media routing of voice calls, , web chat, web callback with reporting of all media types (70-plus standard and custom reports). The CCC agent desktop application combines phone, and web contacts on a single PC; IP Office Microsoft CRM Integrated Software can be added for additional functionality such as screen pops and outbound dialing from a PC. While the Panasonic NCP1000 does not support full-featured ACD, an incoming call distribution group (included) provides a small call center with a good complement of functionality at no extra cost. Avaya offers small call center functionality as an extra-cost option. Additionally, Panasonic's ACD Report Server can provide performance reporting and voice processing in a single-server system two important functions in one.

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