Current Perspective 
Avaya IP Office is threatening in the market for communications platforms for SMBs. It is an all-in-one communications platform running on purpose-built hardware, scaling up to 384 IP lines, and based on a proprietary operating system. Communications applications and functionality included on the platform includes firewall and VPN, data connectivity via Ethernet switch and software-based router, DHCP server, voice mail (basic and preferred editions), call recording, IVR, mobility, auto attendant, call accounting, a 128-port audio conference bridge, point to point video and four-party HD video conferencing, and either basic ACD software or a more advanced contact center software that can scale to 150 agents. This makes it easy and cost-effective for businesses to purchase and deploy the solution. IP Office version 7 shipped in early 2011 and included a BCM migration wizard, support for Nortel Audio Conferencing, support for various BCM and Norstar handsets, IP Office-to-Norstar and IP Office-to-BCM interworking, and other functionality helping facilitate gradual migration from legacy Nortel systems to IP Office.
However, IP Office lacks tight integration with Avaya’s data networking products. This will not necessarily hamper its ability to deliver a quality voice over IP experience, but it could complicate the deployment and management of the disparate voice and data components that make up the larger solution set. Lack of encryption between IP stations could cause concerns about the system’s VoIP security capabilities. And limited hardware (i.e., call processors, power supply) redundancy options could lead to reliability issues. And finally, despite Avaya’s dominant position in North America, it enjoys only limited market share and visibility in the SMB market in Europe. This could hamper IP Office’s ability to establish itself in the region where there is already considerable competition in the SMB PBX space.
However, IP Office lacks tight integration with Avaya’s data networking products. This will not necessarily hamper its ability to deliver a quality voice over IP experience, but it could complicate the deployment and management of the disparate voice and data components that make up the larger solution set. Lack of encryption between IP stations could cause concerns about the system’s VoIP security capabilities. And limited hardware (i.e., call processors, power supply) redundancy options could lead to reliability issues. And finally, despite Avaya’s dominant position in North America, it enjoys only limited market share and visibility in the SMB market in Europe. This could hamper IP Office’s ability to establish itself in the region where there is already considerable competition in the SMB PBX space.
Strengths and Weaknesses
Weaknesses
Strengths• IP Office is Avaya’s primary go-to-market SMB telephony solution. Though Nortel’s Business Communication Manager and various legacy key systems remain in the Avaya portfolio, each of these can now be migrated to IP Office and will gradually be weeded out of the Avaya product portfolio.
• IP Office is a very mature product, having been actively sold in the SMB market for many years. This provides a large installed base into which Avaya and its partners can sell add-ons and services.
• IP Office provides a migration path from BCM and various key systems. This has potential of greatly expanding IP Office installed base as Nortel and Avaya key systems move to it. PARTNER Version and Norstar version, combined with key system mode, facilitate migration from legacy Avaya and Nortel key systems.
• IP Office consists of a single hardware model (IP Office 500 V2) that is capable of scaling to both large and small businesses within the SMB market. This not only allows customers to scale their communications system up or down without purchasing and deploying new hardware, it can also simplify reseller training and support processes since Avaya partners do not need to support many hardware systems.
• Though not as highly scalable as some SMB platforms, IP Office supports identical numbers of IP, digital and other kinds of end stations. This compares well against a number of competing platforms that support comparatively fewer digital lines than IP or vice versa.
• IP Office is not only a communications platform for SMBs, it can have a role in Avaya-based enterprise telephony solution deployments as well. Specifically, IP Office can serve as a remote site solution networked back to a centralized Avaya Aura Communication Manager PBX using Session Manager. This adds to the flexibility of the platform.
• IP Office is a very mature product, having been actively sold in the SMB market for many years. This provides a large installed base into which Avaya and its partners can sell add-ons and services.
• IP Office provides a migration path from BCM and various key systems. This has potential of greatly expanding IP Office installed base as Nortel and Avaya key systems move to it. PARTNER Version and Norstar version, combined with key system mode, facilitate migration from legacy Avaya and Nortel key systems.
• IP Office consists of a single hardware model (IP Office 500 V2) that is capable of scaling to both large and small businesses within the SMB market. This not only allows customers to scale their communications system up or down without purchasing and deploying new hardware, it can also simplify reseller training and support processes since Avaya partners do not need to support many hardware systems.
• Though not as highly scalable as some SMB platforms, IP Office supports identical numbers of IP, digital and other kinds of end stations. This compares well against a number of competing platforms that support comparatively fewer digital lines than IP or vice versa.
• IP Office is not only a communications platform for SMBs, it can have a role in Avaya-based enterprise telephony solution deployments as well. Specifically, IP Office can serve as a remote site solution networked back to a centralized Avaya Aura Communication Manager PBX using Session Manager. This adds to the flexibility of the platform.
• Though IP Office is Avaya’s primary got-to-market communications system for SMBs, it shares the portfolio with Business Communication Manager, Nortel’s SMB telephony system which continues to be actively sold. This situation creates competition for IP Office within Avaya’s own portfolio of SMB products.
• IP Office is based on a proprietary operating system (IP Office OS) rather than on Linux like a number of rival products in the market for SMB communications solutions. Linux is generally favored as an OS for communications systems because it is comparatively stable platform and cost-effective to deploy.
• Many of IP Office’s recent updates have been focused on introducing features that facilitate migration from and interworking with Nortel SMB communications systems. While this is certainly valuable given ongoing product consolidation initiatives following Avaya’s acquisition of Nortel, existing IP Office customer without legacy Nortel products in place could become concerned about IP Office software releases becoming too-Nortel centric.
• IP Office has undergone many changes to the underlying technology in recent years, with the 406 and 412 models, as well as a platform specific to small businesses, being introduced, then withdrawn. This could cause concern among resellers seeking a stable SMB communications platform to sell, service and support. Moreover, version 7 of the IP Office software run only on the IP500 and IP500v2 control units, not on the 406 and 412. There are of course advantages to delivering customers a single platform, however companies with older IP Office hardware in place will not be able to upgrade to the new hardware without purchasing and deploying new control units
.
• IP Office is based on a proprietary operating system (IP Office OS) rather than on Linux like a number of rival products in the market for SMB communications solutions. Linux is generally favored as an OS for communications systems because it is comparatively stable platform and cost-effective to deploy.
• Many of IP Office’s recent updates have been focused on introducing features that facilitate migration from and interworking with Nortel SMB communications systems. While this is certainly valuable given ongoing product consolidation initiatives following Avaya’s acquisition of Nortel, existing IP Office customer without legacy Nortel products in place could become concerned about IP Office software releases becoming too-Nortel centric.
• IP Office has undergone many changes to the underlying technology in recent years, with the 406 and 412 models, as well as a platform specific to small businesses, being introduced, then withdrawn. This could cause concern among resellers seeking a stable SMB communications platform to sell, service and support. Moreover, version 7 of the IP Office software run only on the IP500 and IP500v2 control units, not on the 406 and 412. There are of course advantages to delivering customers a single platform, however companies with older IP Office hardware in place will not be able to upgrade to the new hardware without purchasing and deploying new control units
.
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