Based on the following observations, it is clear that Schlumberger should divest SWT:
1 - SWT's market value is at its peak
2 - SWT costs more than it brings
3 - Schlumberger needs cash for better opportunities
1 - SWT's market value is at its peak
We are reaching the apex of a speculative bubble centered on cloud technologies, big data analytics and the artificial intelligence. All signals are red: the stock price of companies relying on these technologies are completely disconnected from their sales revenue or profit, the software job market has gone crazy and the "new paradigm" stage was reached when the "technological singularity" theory was broadcasted by mass media. Historically, Schlumberger didn't do too well at identifying bubbles (Sema acquisition in 2001, Slb investor's conference in June 2014, etc.) - but better late than never.
Speculative bubbles are often associated with stories of financial disasters. However no money ever evaporates: they are also fantastic opportunities of making money. In short: those who sell before the burst win, those who buy lose. This is precisely how Slb could take advantage of the bubble: by selling SWT over its actual value. In that respect, all the hype about the cloud, AI, STIC and its collaborations will tremendously help in getting a better price.
2 - SWT costs more than it brings
Despite the downturn, Schlumberger's software arm is still profitable. That is a strong selling point for SWT. However, it does not mean that SWT itself is profitable (but buyers don't need to know): the resilience of the software branch is mostly due to its legacy products (which were conceived and developed before SWT was even created), to the brand names that were developed over the last 20 years and to the latency inherent to the O&G software market. SWT, which was created much more recently, didn't develop any real new product, only provided the minimum maintenance, and cannot be credited for the sales of the legacy software. Nevertheless, it costs a lot: heavy from a process and management standpoint, it is present in many high cost countries/regions (Norway, UK, California). Finally, it devotes a large budget to "the hype" and very little to solving actual O&G problems.
3 - Schlumberger needs cash for better opportunities
While the IT market is at its peak, the O&G is at the bottom. So are prices, and many operating companies are totally cash-strapped. This is a fantastic opportunity for the "production management" business unit, which can take advantage of the downturn to land juicy production sharing deals, and pull other segments through. All that's needed is E&P expertise (Slb still has some) and cash.
Time to think new, act new, and sell SWT.