We're looking to replace our Panasonic DBS system. We're trying to decide between an NEC IPK or Toshiba CTX670. We have about 40 users. Any suggestions?

Thanks

A lot depends on what you need and how you might expand in the future. I don't know much about the NEC, but the CTX670 should be able to handle just about anything you throw at it.

How'd you narrow it down to these 2 and who did you initially look at?

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There are probably 10 different systems out there that could handle anything you want to do just fine.
Find a good installation company that will adequately install and support your product.
I have said it before and will say it again: A good installer/programmer can make a mediocre product shine. A poor installer can make the best system a nightmare.
Check references, ask around, talk to other businesses about who they use.