FUJ00243299
FUJ00243299
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FUJITSU
Fujitsu
Fujitsu Services Limited
Lovelace Road, Bracknell, RG12 8SN
STRICTLY PRIVATE & CONFIDENTIAL
Chris Brocklesby
Post Office
100 Wood Street
London
EC2V 7ER
Date: 15 December 2023
Dear Chris
Your Request to Further Extend the Horizon Services Agreement
Thank you for your letter dated 21 November 2023 requesting discussions regarding a potential further
extension to the Horizon Services Agreement (‘Agreement’).
As you will be aware, we have been discussing for some years now how best to facilitate Post Office’s
replacement of Horizon and its associated services.
There are various challenges to the feasibility of the continued delivery of the Horizon system and associated
services. To reiterate these include the following matters:
1. the risks associated with the continued provision of the Horizon system (including the audit archive) on
an end-of-life IT infrastructure. Understandably, Post Office has historically been strategically focussed
on alternative solutions to Horizon rather than investing in the existing infrastructure. Due to the age
and consequent end of service life status of the underpinning Horizon infrastructure there is an
increasing risk of failure of the infrastructure that could result in adverse impact in the delivery of
services to the public.
2. the technical complexity and risk associated with (i) updating infrastructure at varying states of
obsolescence and compatibility, and (ii) delivering new system requirements, including because of
lessons learned and commitments to end users. These activities are increasingly risky and technically
challenging given the End of Service Life Horizon system noted in paragraph 1 above.
3. the need to extend the leases on the Datacentre facilities that host the Horizon system which is subject
to the landlord’s agreement, in accordance with the required term.
Fujitsu
Fujitsu Services Limited, Registered in England no 96056, Registered Office Fujitsu, Lovelace Road, Bracknell England, RG12 8SN
FUJ00243299
FUJ00243299
co
FUJITSU
4. the retention of a highly specialised staff who, in some cases, have been working on this system for many
years, and have consequent deep knowledge of the underpinning business logic, bespoke application
and aged infrastructure environment.
5. the challenges of recruiting staff to work on the Horizon system with the required knowledge in aged
infrastructure and bespoke applications, which is also the subject of ongoing public scrutiny.
In consequence, we strongly recommend that Post Office should continue to prioritise its objective of replacing
Horizon and its associated services, as early as it can. Fujitsu will continue to support and facilitate an orderly
transition to an alternative solution by (or preferably before) the expiry of the current term in March 2025.
That said, we do understand that Post Office must plan its fall-back positions in the event that it cannot achieve
an exit of the services provided by Fujitsu because its chosen replacement solution is not fully deployed in time.
Fujitsu is therefore willing to discuss how a potential extension might work, but it is important to note that given
the significant challenges raised above, those discussions will need to thoroughly test whether any extension is
viable.
Asa preliminary step, it would be helpful to receive further information from you, particularly around the specific
requirements for the requested extension of up to 5 years to March 2030, to enable an assessment of the
consequent considerations and risks and the resulting conditions and refresh requirements.
In order to aid this discussion, Fujitsu proposes a workshop to occur in January 2024 to determine Post Office’s
requirements for exit assistance and any potential extension. It would assist that workshop if the Post Office
could prepare an outline approach to the roll out of its new Point of Sale system, the replacement of individual
HNG-X Operational Services and an approximation of the associated timescales. This will enable Fujitsu to
undertake some preliminary feasibility and impact assessments.
I look forward to hearing from you in due course, following which we will consider your request further.
Kind Regards,
Dan Walton
Head of Post Office Account, Fujitsu
Fujitsu
Fujitsu Services Limited, Registered in England no 96056, Registered Office Fujitsu, Lovelace Road, Bracknell England, RG12 8SN