The G650 is an unintelligent box , the ipsi(talks to the server makes the gateway intelligent) , clan(phones register) ,and med pro (speech), are the cards that make the thing work and yes you will need to upgrade , check on the avaya support site for the firmware matrix to ensure you upgrade to the correct version.The phones will also need the correct firmware version use the utility server function to facilitate this.
APSS (SME)
ACSS (SME)
ACIS (UC)