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AVAYA COMPETITIVE STRATEGY VS MICROSOFT LYNC May 2013
Avaya Inc. - Proprietary & Confidential. Use pursuant to your signed agreement or Avaya policy.
Do not distribute outside of Avaya. Page 1
Agenda Setting
How to Use This Document
This document should be used as part of your agenda set up and business discussions with customers. Only use those statements that are needed based on your customer requirements. The document itself may not be distributed to customers.
Agenda Set up
Below is a description of different Key Factors of Competition (FOC) that you should address with your
customers. Here, you will have a list of leading questions to help you set up an agenda with your
customer.
Key FOC Leading Avaya
Question Microsoft Why it matters?
Enterprise Voice
Does Microsoft Lync
software provide an
end to end solution?
No, not directly. Microsoft relies on many 3rd Parties to provide components for the total solution. Microsoft provides the Lync software applications and clients.
3rd Party components add a level of complexity to the design, implementation, manageability, maintenance and on-going support. You may have to rely on several different vendors or their business partners to provide knowledge and support for the system component. Administration and management of each of the 3rd Party components is also now more complex as each has its own user interface and monitoring/alarming capabilities. Updates and upgrades to the different 3rd Party components must be verified/ certified as compatible and interoperable with all parts of the solution.
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Troubleshooting a complex solution made up of many 3rd Party components complicates problem identification and resolution.
When you deploy
Microsoft Lync
Enterprise Voice to
replace the existing
PBX, can you preserve
your phone sets?
Lync 2013 software uses proprietary protocols and utilizes 3rd Party phone vendors to provide phones sets to replace the currently deployed sets, if the current phones are not compatible.
Phone sets are expected to last for many years and are a large investment of any communication solution. To replace them all is a costly venture and most models are compatible and move forward with updates and upgrades of the current system in place.
Are you aware that in a Lync 2013 environment many customers still require desk phones?
Microsoft expects that the 3rd Party phone vendors will provide the appropriate phones where required to cover the customer needs.
Microsoft tends to create the perception that customers only need headsets and dont need to replace the phones. Many end users still prefer to use their reliable desktop phones based on convenience and familiarity with the interface. Customers may also expect that many or some of their locations will still have phones in place. In addition to desk phones, phones are also needed for the lobby or common areas, executives, administrative staff, office workers, warehouse. The existing phones may even be a combination of IP, digital and analog devices. Replacing the desk sets and other phones is expensive and drives complexity. There is a hidden cost through the use of headsets that Microsoft does
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not highlight. (See TCO section)
Did you know that the Lync 2013 solution requires 3rd party gateways and SBCs?
Microsoft relies on 3rd Party gateway manufactures like Audio Codes, Sonus, Dialogic, and others, to provide access to the PSTN or branch locations.
Relying on the 3rd Party gateway and SBC vendors adds complexity to the solution for administration, troubleshooting and support. Designs need to be created, new purchasing contracts established, vendors contracted for support and internal staff must be trained to administer and support the systems. Any existing gateways or SBCs will more than likely need to be replaced to be compatible with the Lync solution.
Can Lync 2013
software deliver 5-9s
availability (less than 5
minutes of downtime
per year)?
Microsoft has not posted any reliability numbers and will respond that they have a High Availability configuration option for Lync 2013 software, but nothing on reliability has been stated.
Reliability of a system is extremely important to understand as: 5 9s reliability = 5.26 minutes of downtime per year 4 9s reliability = 52.56 minutes of downtime per year 3 9s = 8.8 hours or 525.6 minutes of downtime per year 2 9s reliability = 5,256 minutes or 3.65 days of downtime per year To put this is in perspective; think about how long it takes to reboot a server just one time. Per the Information Management Report, August 2009, just one hour of downtime per year can cost between $270K and $19M over 3 years. Some industries such as Health Care, Financial Services, Public Safety and many others have 5 9s as the
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minimum requirement for communications and reliability comes heavily into play when considering Lync 2013 Enterprise Voice, for audio, video and conferencing. Avayas voice solutions are designed and built to perform to higher reliability numbers.
Does Lync 2013
software have call
recording?
Yes, Microsoft will confirm that they do, but it is for recording only on the client side.
Client side vs. server side recording is not something that we at Avaya agree with from a security and archiving perspective. Client side recordings allow for the recording to be copied and emailed to others. This can create a security and policing concern. This can also create storage issues due to multiple file storage. Server side recording on AAC7 allow for network storage and archiving and can be protected with password and security policies.
Is there music on hold
with the Lync 2013
solution?
Yes, with some limitations it is possible to have music played for callers on hold.
Music on hold (MOH) is possible, but it requires a specific PSTN gateway. This is capability isnt something most people think about when selecting a gateway. Lync Phone Edition devices only provide the default Microsoft music on hold when you press the Hold button. In addition different gateways may also have different MOH file size limitations. 3rd Party phone sets can also be an issue as updates may be required to enable the call hold feature and MOH
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capability.
Do you know that
telephony capabilities
vary dependent upon
3rd party phone
vendors?
This statement will be confirmed by Microsoft and their response is to instruct a customer to work with a Lync certified phone vendor in order to meet their needs.
There are two classes of phone vendors, optimized and qualified. Typically, more features of the Lync solution are available from the optimized vendor as they provide tighter integration with Lync software but lack key features such as Boss Admin, Lync Phone Edition, etc. Lync qualified vendor components are not as tightly integrated but might provide additional features. As mentioned previously, capabilities such as Boss/Admin, shared line appearance, and intercom/paging ,or simply placing a caller on hold, can be an issue if the vendor of choice does not have the capability to enable those features on the current phones. Lync compatible phones are still in an early state of maturity and patches and updates for fixes and function/feature additions are quite common.
Does Lync 2013
software have over
the phone paging
capability, i.e. crisis
alert?
Microsoft will point the customer to work with one of the phone vendors for a possible solution.
The Lync 2013 solution does not have over the phone paging. There are some workarounds to make specific/individual phone sets act as a speaker, but there are no broadcast paging capabilities.
Can the Lync 2013
solution provide you
with an attendant
console for operators?
Microsoft will tell you to continue using the Lync 2010 soft version attendant console until they announce a new version.
Most customers still require operator and attendant consoles. Soft consoles for the desktop are becoming more popular, but there is still demand for the hard console as well. Microsoft provides a soft console for
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the Lync 2010 solution only; their phone vendor partners do not yet have attendant consoles available. The Lync 2013 application does not have the soft attendant console and the only option is to use the Lync 2010 version. This is one of the key functions that are missed by companies that have operators or administrators answering calls and today, the only answer is to use the Lync 2010 soft console.
Are you ready for the
complexity that the
requirement for 3rd
Parties adds to the
Lync 2013 solution?
The answer from Microsoft is that they rely on their partner community to provide components and support for the Lync solution.
The complete Lync 2013 solution requires components such as: gateways, SBCs, load balancers, conference phones, desk sets, headsets, conference room systems, MCUs, etc. The numerous 3rd Party components drive the complexity of the Lync 2013 solution which requires:
- Management of the different vendors for their individual components.
- Management of the maintaining/supporting vendors (there may be several needed for total solution support).
- Training for your internal staff to provide system administration for all of the 3rd Party components and Lync application as well as Help Desk support.
- Staff training to provide support for troubleshooting the solution in the event of
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an issue/outage. Requires knowledge of the solution components as well as which vendor to contact for support.
- Expansion/scaling to add another site, or resources at a specific location.
Valuable time can be lost in
determining where an issue
originates and who to contact for the
quickest resolution to the problem.
Multiple parties may ultimately be
required for problem resolution.
One of the consequences for
implementing systems with many 3rd
Party components is higher cost as
reported by Nemertes. See the TCO
section below.
How do the many 3rd
party solutions affect
manageability of the
Lync 2013 solution?
Microsoft will answer that there are various methodologies to manage the Lync solution and that one of them is to contract with the vendors or business partners that can best support them.
The reality of the Lync solution is that the larger and more diverse the solution is, the quantity of 3rd parties is likely to increase, and the more complex the solution becomes the harder it is to manage. Manageability, troubleshooting, network polices, security, administration support and even Help Desk skills are spread across many vendors and business partners. This makes the solution hard to manage, keep up to date and maintain. Nemertes Research has calculated that Microsoft customers spend nearly double on third-party partners compared to the median cost of seven vendors (from Nemertes Research 2013: DN2459 -
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Operational Cost Drives Stark Differences in FirstYear Telephony, UC FirstYear Cost).
How does WAN loss
affect Lync 2013
branch survivability?
Microsoft may indicate that they have partial survivability in the event of WAN loss at a branch location.
Each gateway manufacturer has different capabilities but even the best cannot provide messaging or conferencing in survivability mode when the connection to the WAN has been lost.
Does the Lync 2013
solution integrate with
other voice mail
solutions?
No, Lync only integrates with Microsoft Unified Messaging.
Lync 2013 software only integrates with Microsoft Unified Messaging for voicemail storage within Exchange. There are no other options for voicemail in the event that you want non-unified voicemail in a local store such as Avayas Modular Messaging or Aura Messaging. Separation of text and voice is not possible with Microsoft Unified Messaging. This is an issue for some customers who require messages to be discoverable.
Does Lync 2013
software have system
level diagnostics with
proactive error
correcting?
No, Lync 2013 software only has system level monitoring/reporting. There is no error correcting routines, but some 3rd Party applications provide proactive monitoring.
Lync 2013 software has monitoring and reporting capabilities but no diagnostic or error correction applications such as Avaya Expert Systems for real-time proactive monitoring and corrective actions. There are some 3rd Party monitoring applications such as Prognosis that can provide some level of proactive monitoring and error reporting but not error correcting.
Do you know that Lync
2013 Enterprise Voice
has very little market
Microsoft may respond that they have sold many licenses for Lync Enterprise Voice
While Microsoft has sold many licenses for Lync [noun]and Lync 2013 [noun] worldwide, most have been
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traction? worldwide. for IM and Presence. Although Enterprise Voice CALs may have been sold as part of an Enterprise Agreement, few have been deployed enterprise or companywide.
Lync UCC
Can the Lync 2013
solution deliver high
reliability?
No, the Lync 2013 solution has standard and high availability options but no reliability projections have been posted.
Lync 2013 does not have any reliability numbers posted and no references can be found to establish the type of reliability the platform may have. As stated above, reliability is paramount for many companies especially in certain verticals and the Avaya UC solutions are designed for high reliability.
Is Lync video
conferencing
bandwidth efficient?
No, Lync utilizes available bandwidth to deliver the best possible customer video experience.
According to 2012 Constellation Research, Inc. Pervasive Video in the Enterprise by Dr. E. Brent Kelly, Lync architecture increases video conferencing bandwidth compared to distributed media solutions by up to 600%. This same Constellation Research, Inc. report also states that Microsofts technical documentation states that Lync 2013 clients may send up to five different streams with total bandwidth up to 8 Mbps (depending upon CPU and memory capacity) to allow different endpoints to see different image sizes or qualities. Avaya Aura Conferencing 7 (AAC7) is designed to minimize network traffic for video through its distributed cascading media server architecture. Single video streaming between the application server and media servers
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minimizes traffic where Lync with its hub and spoke model sends steams to each individual endpoint.
If you need large scale
conferences, do you
know that the Lync
2013 solution can only
scale to one large
conference of 250
concurrent users or
one event conference
of 1000?
Microsoft may confirm that you can have up to one large conference of 250 users or one large event conference of 1000 participants.
As Microsoft states, you can have up to 250 users in one large conference with all others being less than 250 with a maximum of 4,000 simultaneous participants in conferences. A dedicated Lync 2013 Front End server is required for the large event conference of 1000 participants and for more than one large meeting, Microsoft recommends setting up multiple dedicated large-meeting pools. Avaya Aura Conferencing 7 far exceeds the one large conference capability of the Lync applications with 40 concurrent conferences of 250 participants each. In addition, you can have up to 15,000 simultaneous participants in conferences. The maximum size for large event conferencing on AAC7 is 2000 (audio) and 1500 (web) simultaneously and will require a dedicated media and web server.
Does Lync 2013
software have
multicasting?
No, Microsoft Lync software uses MPOP (mutliple point of presence) concept instead, which is a bit more nuanced than true multicasting.
When IM/chatting a Lync 2013 user that has a mobile client, a web client and a desktop can regularly lose instant messages because the Lync server routes them to the last logged in client instead of all clients. For instance, if chatting on the mobile device the desktop client does not log the chat session. This is a known issue with Lync 2013 software and there are currently no posted plans to
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change from MPOP.
Can you share meeting
content on Android
and iPhone devices?
No, today only IM/P can be viewed.
No meeting content or data share can be shared using the Lync 2013 client on the Windows Phone, Android or iPhone devices. Only IM and Presence capability exists today. With Avaya Scopia solution we can show content on both the Android and iPhone devices.
Can you view multi-
party video on
Android, iPhone or
iPad devices?
No, using the Lync 2013 client you can only see single party video.
It is only possible to see single party video today on the Windows Phones, or on Android, iPhone and iPad devices today. No multi-party video capabilities are currently available. With Scopia video solutions we can show multi-party video on the Android devices, iPhone and iPad devices.
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When the Lync 2013
solution integrates
with Polycom room
systems can you
simultaneously see
both content and
people?
No, using Lync 2013 software integrated with Polycom you can view only people or content, not both.
Using Avaya Scopia video solutions, people and content are sent on two different video streams vs. Lync video which utilizes single stream technology. It is not possible to see both people and content simultaneously when using Lync 2013 software integrated with a Polycom room system. The participants have to switch back and forth between people or content. Using Avaya Scopia video it is possible to see people and to share content simultaneously when integrated with a Polycom room system (and other 3rd Party video systems) thus increasing the participant experience and collaboration.
Do you know that
even connected to a
Polycom video system
the most participants
that you can view is a
gallery of 5?
Microsoft may agree that they have a gallery type set up where a view of 5 participants is the limitation.
With the Lync 2013 application you can only see a gallery of 5 participants plus the highlighted speaker. With Avaya Scopia solutions, it is possible to see up to 28 people at one time with active speaker switching. In the event of an Avaya and Lync 2010 integration via ACA, the Lync Client can now see as many as being displayed by the Scopia bridge (up to a maximum of 28 participants).
Does Lync 2013
solution have server
side recording?
No, Lync 2013 software utilizes client side recording only.
Lync 2013 client side recording of conferences allows for multiple copies of recordings to be stored on local devices with backup dependent upon the user. Client side recording
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are also a security issue for many companies as recording can be downloaded or emailed to others outside of the organization. Both AAC7 and Scopia video solutions utilize server side recording. Serve side stored content can also be password protected and follows network and archiving/backup policies as well as companywide security practices.
Can the Lync 2013
solution interoperate
with existing video
conferencing
solutions?
Microsoft may state that they can interoperate with their new Polycom Lync compatible room system.
The Microsoft Lync 2013 solution is expected to interoperate with existing video conference system like Polycom, Tandberg, etc. over the next 12 to 18 months. Scopia video solutions prove to interoperate with Polycom, LifeSize, Tandberg and others and can do so in a mixed video vendor environment (e.g. Polycom and Tandberg, operating within the same company). Interoperability applies to video, audio and document sharing.
Does Lync 2013
software work on
earlier versions of
Windows?
No, Microsoft will tell you that Lync 2013 software requires Windows 7 or 8 in order to load the 2013 Client.
Lync 2013 software does not work with previous versions of Windows. You must have either Windows 7 or 8 on the laptop or desktop that you are using. Upgrading all desktops/laptops to Windows 7 and 8 is one more step that a company has to plan for and manage with a Lync 2013 application deployment plan. Avaya Scopia solutions and the Avaya Flare platform run on Windows XP and Windows 7 in addition to more
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recent Windows releases.
Lync TCO
Why does adding Lync
2013 licensing to a
portfolio or Enterprise
Agreement affect the
customers cost and
choice for vendors?
Microsoft may respond that they want the customer to add all of their solutions to the Enterprise Agreement, and that Microsoft feels that is the best value for the cost.
Once a customer agrees to a Microsoft Enterprise Agreement, it remains in place for a term of 3 years, limiting budget funds that might have been applied to other projects or technologies that may be competitive and less costly. Going with Lync 2013 licensing also limits voicemail options as the only option is Microsoft Unified Messaging that stores voice messages within Exchange. That may require a customer to change from the existing voicemail system and implement the new platform; that change and any associated training of the support staff and end-users increases the cost of the solution.
Is Lync 2013 Enterprise
Voice a low cost
alternative to an Avaya
enterprise telephony
solution?
Microsoft may tell you that, compared to your current telephony vendor, they are a lower cost alternative.
According to Nemertes Research 2013: DN2459 - Operational Cost Drives Stark Differences in FirstYear Telephony, UC FirstYear Costs: Microsoft Lync Enterprise Voice first year TCO is 2 times higher than the Avaya solution. This is driven by a 6x higher operating cost which is driven by an 8x higher internal cost. Customers of Microsoft spend more than three times the median on internal staff per endpoint. They attribute the figure to challenges related to integration and sound
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quality. Often, Microsoft users start with the Lync solution (and in some cases, OCS software), using instant messaging and presence. But when they add voice and/or video, that adds complexity they often did not anticipate.
Why is Lync TCO data
so high? N/A
There are two reasons that the Lync TCO data is so high. The first being the cost difference between Avaya Aura and the Lync voice license. And the second being the high 1st year operational costs of the internal staff previously pointed out above in this TCO section by Nemertes.
What is the top reason
that both mid and
large enterprises do
not implement the
Lync 2013 solution for
enterprise voice?
N/A
In a survey conducted by T3i Group, InfoTrack: End-user Primary Research in Feb. 2012, the number one reason that mid and large enterprises did not deploy Lync voice was the total cost of ownership.
Is Lync 2013 Enterprise
Voice more expensive
than an Avaya Aura
upgrade license?
N/A
Yes, Lync 2013 Enterprise Voice is much higher than an Avaya upgrade. In comparing Lync voice licensing to an Avaya Aura upgrade with typical customer street discounts, the Avaya cost per user is $95 where Lync voice comes in at $152 per user. Assumption in this comparison are:
- 5,000 user community Avaya:
- Upgrade license @ 50% discount
- Support Advantage @ 13% discount
- Upgrade Advantage @ 41% discount
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- 3 year contract Microsoft:
- Voice Plus CAL License @ 30% discount
- Software Assurance per Enterprise Agreement
- 3 year contract
Does the cost of the
Lync 2013 solution
increase with the
inclusion of 3rd party
applications?
N/A
Yes, the cost of the Lync 2013 solution increases as 3rd Party applications are added. Cost of component, implementation, training for internal staff to support, vendor maintenance contracts and Help Desk all add to the total cost of the solution.
Did you know that
headsets are replaced
much more frequently
than desk phones?
N/A
Headsets can be an expensive investment. Headset costs average around $150 compared to a typical phone set cost of $180. Whereas phones are typically on a 5 -7 year replacement cycle, headsets are replaced closer to every 2 years. When you do the calculation, replacing your existing phones and having to replace the headsets more frequently is much more costly than the investment you currently have in phone sets and their eventual replacement over time.
How does termination
of OCS software
grandfathering affect
the Lync 2013 solution
cost?
N/A
Customers that previously had OCS grandfathering in place now have to pay for Lync 2013 licensing. That can be quite a shock when having used the application for some time at no cost.
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In addition, per No Jitter, on
December 1, 2012 Microsoft will
charge a 15% premium for user CALs.
This price change will also affect
enterprises with Core CAL and
Enterprise CAL Suites.
Companies using the Lync solution will need to pay 15% more for the user CAL if they access Lync from multiple devices.
If you have an
Enterprise Agreement
can you match
capabilities to actual
user adoption?
Microsoft may respond that it depends on the capability that you want to enable.
Depending on the capability required, all or some of the users must be enabled in the Enterprise Agreement for the capabilities that you need. For instance, if you are looking at conferencing, you cannot enable it for only a small section of the population, all users in the Enterprise Agreement must be licenses/enabled in order to have access to conferencing. For Enterprise Voice, only the segment of the population that is being enabled can be licensed.
Is the 3 year TCO of a
Lync 2013 end to end
solution more cost
effective than an
Avaya upgrade
solution?
N/A
No, the TCO of a 3 year end to end Lync 2013 solution is not more cost effective than an Avaya upgrade solution. In a 3 year comparison of 5,000 users with 1 Hub and 3 Branches, the following results were obtained: $7.0M - Microsoft Lync 2013 only $4.6M MS IM/P and conferencing, Avaya IPT $3.5M MS IM/P and Avaya IPT and conferencing (the most cost effective solution) using ACA
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Microsoft Assumptions: ECAL Suite with IM/P deployed
Avaya Assumptions: Avaya Aura CM R5 with SSU
Hardware Discount (Servers) 40% Range 20-50%
Audiocodes (SBA, PSTN Gateway) 40% Range 20-50%
Radvision Scopia Gateway 50% Avaya Discount
Polycom Phones Discount 40% Range 20-50%
Jabra Headsets Discounts 40% Range 20-50
WLAN Device Registration / SBC Discount 50% Avaya Discount
Microsoft Discount 40.0% Range 25-50%
Qty Users 5,000
SA Factor per year 25%
Factor for MSFT Reduction Internal Staff 25%
Factor for MSFT Reduction in on-going Training 75%
Normalization Factor for OPEX 14%
Hardware/PC Maintenance 10%
Conferencing Users 5,000
Assumptions
Avaya Upgrade lic/equipment 50%
New Avaya equipment/lic 50%
Qty Users 5,000
Collab Suite SA 42.40$
Mobility Suite SA 26.40$
Foundation Suite SA 13.80$
Flare UI SA -$
Collaboration Suite UA 31.50$
Mobility UA 19.50$
Foundation Suite UA 13.50$
Factor for Avaya Reduction Internal Staff 0%
Factor for Avaya Reduction in on-going Training0%
Normalization Factor for OPEX 20%
SA Discount 10%
UA Discount 40%
UA Factor 6%
IPT Hardware 8,200.0$
Messaging 3 Servers Maintenace 5,688.0$
onex Mobile Hardware Maintenance/yr 1,800.0$
AAC7 Server Maintenance 3,600.0$
Hardware/PC Maintenance 10%
Conferencing Users 5,000
Foundation Suite 5,000
Collaboration SA Foundation allocation 0.67
Collaboration UA Foundation allocation 0.57
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Lync and
Avaya
Integration
Can you integrate the
Lync solution with
your Avaya call
control?
N/A Yes, through the use of the ACA integration, Avaya call control can continue to be utilized.
Did you know that
with ACA you can
preserve your
investment in Avaya
phones and contact
center?
N/A
By using ACA all calls can be redirected back to the Aura CM, contact center and to your existing desk sets.
Can I integrate the
Lync application and
leverage 5-9s
reliability of the Avaya
infrastructure?
N/A Yes, by redirecting calls back via ACA you can leverage the5 9s reliability of the Avaya infrastructure.
Can I see more than 5
people in a video
conference using ACA? N/A
Yes, using ACA and redirecting video to the Scopia solution you can view up to 28 participants in a video call.
Can I save expense by
deploying ACA? N/A
You can save expense by deploying ACA and redirecting traffic back to the Avaya infrastructure and utilizing its capabilities instead of purchasing Lync Enterprise Voice licensing.
Can I communication
enable the rest of the
Microsoft Office Suite
by implementing ACA?
N/A
ACA allows for integration to the Microsoft Office suite with its add-in and provides collaboration capabilities inside of both Outlook and SharePoint 2010/2013 deployed on Windows XP, Windows 7 and Windows 8. Functionality provided includes: click to voice/video call, click to join/host conference (audio & web), rich Avaya presence when used in conjunction with Avaya UC end points, Lync presence when used in conjunction
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with Lync integration and reply with IM and reply all IM.
Does Avaya ACA plan
to support Lync 2013? N/A
Avaya Client Application (ACA) version 6.3 is planned to support the Lync 2013 solution later this calendar year. In addition to supporting the Lync 2013 solution some planned enhancements are: Support for the Lync 2013 Client, Windows 8, SIP voice and video, VDI and launching both AAC7 conference and web collaboration.