The main reason for the two types is historical, supporting the existing phone base in different IP Office markets.
The IP Office suite is a development of an non-Avaya predecessor called Network Alchemy.
Network Alchemy was taken over by a UK company called SDX, whose phone systems used DT phones. Thus support for DT phones was added.
SDX then became part of Lucent/Avaya and support for DS phones was added.
As for which is better - hard to say, they all have their strength and weaknesses. The range of phones useable with a DS port is a lot broader and will probably keep growing would be my thought with DT becoming more of a legacy feature.
Voicemail operation, especialy with Group Mailboxes appears to be easier with a DT Phone, allso it seems to be easier for a user to programm features on a DT phone.
Some of the key emulation available on a DT is however better than that for the DT
I would suggest that the 2 biggest factors in chosing 1 over the other would be usere familiarity if the phones are already in use on another site & cost.
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