Comparison of Panasonic NCP1000 vs. NEC UX5000 For the Small- to Medium-Sized Business Market December 2008

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1 Comparison of Panasonic NCP1000 vs. NEC UX5000 For the Small- to Medium-Sized Business Market December 2008 This report summarizes the major advantages of NCP1000 over UX5000 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. NEC UX5000 Panasonic s KX-NCP1000 and NEC s UX5000 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. The NEC UX5000 Communication Server is an IP-based platform that offers scalability, VoIP and TDM voice support, centralized management and productivity features for small and medium businesses. The UX5000 supports 512 SIP stations and 200 SIP trunks and includes a range of applications that are available as a card option or are activated by licenses. Most licenses are available for a 60-day free trial period. For reliability, a dual CPU option offers built-in redundancy, and automatic failover and redundancy are provided when there are two or more networked UX5000s. The UX5000 can operate as a pure IP system or a converged system (digital cards can be added to the system). VoIP Media Gateways (32, 64 and 128 channels) are available for connecting IP to non-ip devices. The UX5000 was designed as an IP migration from NEC s earlier Aspire key system, supporting Aspire s TDM telephones and networking among UX5000 and Aspire platforms. Like the Aspire, UX5000 scales to 512 stations, but is a completely new hardware solution, and circuit cards are not compatible with any other NEC systems. About 13% less expensive for a typical 50-station configuration than the NEC UX5000, Panasonic s NCP1000 is a more cost effective small and medium business solution. From implementation and investment protection perspectives Panasonic has advantages with built-in voic and phone sets compatible across a wide range of Panasonic solutions, versus NEC s more proprietary-set approach. 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 NEC UX5000 has two integrated messaging options, the UX-IntraMail daughterboard (plugs onto the main CPU card) and the more feature-rich UX-Mail card (requires a chassis slot). UX IntraMail supports 576 total mailboxes, from four to 16 voice mail ports and from 16 to 32 voice storage hours. UX-Mail supports 2,000 total mailboxes, from four to 16 voice mail ports and from 125 to 550 voice storage hours. (UX5000 is also compatible with NEC's earlier analog NVM- Series voice mail/auto attendant platforms.) Both UX IntraMail and UX Mail enable popular messaging features: auto attendant, live conversation recording, integration, interactive soft keys and additional functionality via digital integration such as One-Touch Forwarding, One- Touch Mailbox Access, One-Touch Message Retrieval and more. In addition to greater capacity, the UX Mail card adds fax server capabilities, AMIS networking and basic unified messaging to the above feature set. 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 NEC users.

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 NEC UX5000 offers a Desktop Suite with three telephony utilities within one application. Included is a PC Assistant to control a desktop telephone, an IP SoftPhone and a PC-based attendant console for performing operator or receptionist duties. The PC Assistant provides management and operation of a desktop terminal from a PC - for easy speed dialing, call management, contact directory and lookup, call recording, custom hot keys and CRM integration. The IP SoftPhone delivers high-quality voice communications through a USB-connected headset or handset. It can serve as a primary desktop phone, a supplemental phone or as a telecommuting device. A web camera may be added to deliver video between another camera-equipped soft phone. An operator or receptionist can use the PC Attendant to easily access common attendant functions like direct station select and busy lamp field. Additional features include company directory, recording capability and PC-to-PC messaging. Panasonic s Communication Assistant Basic provides the desktop productivity tools that small and medium businesses need and use preinstalled on the NCP1000 at price points half those of NEC s PC Assistant. With five free licenses it is an even more economical starter package. Panasonic also has a significant advantage over NEC with the Communication Pro s UC and mobile capabilities, which the more expensive NEC PC Assistant does not support.

5 Mobility Both Panasonic and NEC offer in-building wireless solutions and popular options for mobile employees such as softphones, hot desking and/or mobile extensions that allow flexibility in moving about an office location. 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. Additionally, Panasonic customers can take advantage of the company s IP Soft Phone, as well as a Windows Mobile Device running Communication Assistant Pro software for advanced presence capabilities. The NEC UX5000 supports a Mobile Extension (a standard feature) that allows the use of a cell phone as a single line extension of the system. Users can forward a desk phone extension to a cell phone to receive calls, transfer incoming calls to other extensions, make intercom calls and access voice mail, among other features, from the cell phone. Calls that are not answered can be sent to either the cell phone voice mail or office phone voice mail. There are some limitations; though DSS keys are available for the Mobile Extension, they cannot indicate busy status if the extension is active on an external call. And, the Mobile Extension cannot receive Callback/Camp-On requests from other extensions or block Caller ID. Aside from Mobile Extension, users can take advantage of several other wireless options, including an 8-button Wi-Fi handset (with the use of NEC Wi-Fi access points), or an IP DECT handset or an 8-button cordless DECT set. A Bluetooth handset or Bluetooth module can be added to an enhanced terminal for local mobility. NEC s IP DECT solution encompasses the C124 SIP DECT handset and the DECT Wireless Access Point. While Panasonic offers a selection of IP DECT handsets, the C124 is the only available IP DECT handset from NEC for the UX5000. Further, though it has some advantages (20 hours talk time, 13 menu languages, 300 meters range outdoors), the IP DECT solution requires the DECT Wireless Access Point and associated power adapter, CAT5 or higher cabling and DECT Network Security license. 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 NEC in functionality in its support of Windows Mobile devices and mobile presence capabilities. NEC supports presence in its desktop PC software but not as a complete mobile solution. NEC s Mobile Extension provides simple cell phone-pbx functionality, but acts as a single line extension with some feature limitations.

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 NEC s IP-24e IP 24-Button Display Terminal. Both have comparable features and functionality; however, Panasonic IP phones are typically priced 13% lower than similar NEC IP sets with typical Panasonic digital sets 2% less expensive than NEC digital sets. Also, businesses focused on improving employee productivity will appreciate Panasonic s KX-NT366 IP telephone with a flexible, self-labeling display. Each of 48 (12x4) buttons can be labeled on the LCD screen to reflect its function. The NEC UX5000 supports a solid selection of IP and digital proprietary terminals as well as standard analog phones. The UX IP Series and UX Digital Series are SIP compatible and include XML support, intuitive interfaces and menudriven soft keys. Other available options include display and non-display, handsfree or full-duplex handsfree, backlit display and illuminated dial pad models. The system also supports third-party SIP phones and TDM devices like Aspire telephones. NEC IP sets include the high-end IP-CTS IP Color Touch Screen Terminal and the IP-12e/24e/32e with a 224 x 96 pixel XML display with backlighting. All IP terminals include a 10/100 switch, and all display terminals have four softkeys. Supported digital phones include NEC s Digital Series, Enhanced and Value models. Earlier NEC Aspire-system phones like the 34-Button Super Display and various other multi-button display sets are also available for the UX5000. 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 lower-priced and comparably featured to NEC s IP sets. Panasonic offers a much broader line of digital sets at both entry level and mid-featured functionalities and at slightly lower price points than NEC. Panasonic also has an advantage in terms of investment protection. While Panasonic sets are compatible with a wide range of its phone systems, NEC s UX IP and Digital Series phones are unique to the UX5000 system, 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. The NEC UX5000 supports ACD as part of the basic package but requires an activation license for 64 ACD groups for call distribution to agents, call queuing, reporting, optional PC-based supervisor software for scheduling and/or optional indepth and indepth+ Windows-based MIS for real-time statistics, wall board display and configurable reports. A clientbased supervisor position provides traffic management reporting capability. Though the ACD functionality is built-in, the activation license and reporting/analysis capabilities add complexity and price. The street price for NEC s ACD system license is approximately $600, with indepth software an additional $3,100 and an indepth+ upgrade an extra $2,800. 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. NEC does not have full call center functionality (with skills-based routing, for example) and offers ACD group functionality for additional licensing fees. Additionally, Panasonic's ACD Report Server can provide performance reporting and voice processing in a single-server system two important functions in one.

8 Conclusion Panasonic NCP1000 is an integrated and cost-effective telephony solution with the features and functionality most needed by small and medium businesses. With an average street price of $433 per user for a 50-station NCP1000 configuration with all common equipment, 25 IP sets, 25 digital sets, voic and desktop productivity software, Panasonic is about 13% less expensive than a comparable NEC UX5000 solution. Panasonic also has important advantages from implementation and investment protection perspectives with built-in voic and digital and IP phone sets compatible across a wide range of Panasonic solutions, versus NEC s more proprietary-set approach. NEC system pricing is based on typical dealer street prices. Through December 31, 2008, some NEC UX5000 dealers are offering special discounts to existing NEC Aspire, i-series, Onyx and Portrait customers who opt to upgrade to the UX5000.

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