Panasonic Telephone Systems

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KX-NCP1000

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

This report summarizes the major advantages of KX-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.

Panasonic Telephone Systems

Panasonic KX-NCP1000 vs. Avaya IP Office 500

Panasonics KX-NCP1000 and Avayas 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 companys 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 voicemail
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 NCP500s 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, Panasonics 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 NCP1000s
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.

Messaging

The Panasonic NCP1000 has three voicemail/unified messaging options, including a built-in capability at no extra cost.
(Panasonic also offers support for third party conventional, analog voicemail systems.)
The KX-NCP main processor card supports Enhanced Simplified Voice Messaging (ESVM), Panasonics 2-port voicemail
solution. This built-in ESVM2 gives basic voicemail 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 voicemail server. In addition
to basic functionality, KX-TVA systems enable e-mail 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 voicemail/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 Voicemail (4 ports) can be added via an optional card upgrade. Embedded Voicemail 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 e-mail was recently added.
Professional Edition software supports Voicemail Lite (2 or 4 ports) for standard voice mail functionality or Voicemail Pro
(up to 30 ports) as an option (Standard Edition users cannot use Voicemail Lite or Voicemail Pro). VoiceMail Lite also
allows users to copy or forward voice mail as e-mail but does not support some popular voice mail features available on
Panasonics KX-TVA platform like auto attendant, live call recording, reporting and support for centralized voicemail.
VoiceMail 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 e-mail application as a .WAV attachment. Avaya recently introduced the more robust Unified Messaging
Service to Voicemail Pro, adding IMAP compatibility and web browser access to voice mail messages. Further options
can be included like Microsoft Exchange e-mail system integration and text-to-speech.
Panasonics built-in ESVM voicemail for the NCP1000 is more economical and easier to implement for small and medium
businesses. ESVM provides two ports of voicemail out of the box at no incremental cost and provides the basic voicemail
functionality most businesses require. Voicemail is always optional and at incremental cost for Avaya users, and Avaya
users must upgrade to the more expensive Voicemail Pro (which also requires a separate server) when their needs go
beyond 4 ports.

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 VoiceMail Pro and
a personal phone number directory. Other specific features separate incoming/outgoing call logs, voice mail box control
(voicemail 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 VoiceMail 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 PCs soundcard or USB port.
Panasonics 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. Avayas 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 Panasonics Communication
Assistant Pro supports mobile applications and is conveniently installed on the main processor card.

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. Avayas Digital
Wireless uses the 902 to 928 MHz band and uses Avayas 3810 digital wireless telephone (maximum of five per zone).
Avayas IP Wireless solution is a voice over Wireless LAN solution that use Avayas 3616, 3620 and 3626 phones (from
SpectraLink) over 802.11b 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 Avayas 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.

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. Panasonics DECT and 2.4 GHz multi-cell wireless phones, the KX-T7600 digital
phones and the KX-T7000 series are also compatible.
Panasonics 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 Panasonics KX-NT346 IP Phone versus Avayas
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, Avayas 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 Avayas 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.
Panasonics IP telephones are slightly less expensive and comparably featured to Avayas 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, Avayas 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.

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 e-mail 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, e-mail, web chat, web callback
with reporting of all media types (70-plus standard and custom reports). The CCC agent desktop application combines
phone, e-mail 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.

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, voicemail and desktop productivity software,
Panasonic is about 39% less expensive than a comparable IP Office 500 solution, even with Avaya Phone Manager Lite
desktop software included free.
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 NCP1000s target market of less than 60 users.
The Panasonic and Avaya system pricing shown below are based on typical dealer street prices.

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