Why Your MSP Needs Software Engineers, Not Just Support Techs | Vulcan365 - Vulcan365

The managed services industry is at an inflection point. The traditional MSP model—built on hardware support, software installations, and reactive break-fix work—is no longer sufficient for today's technology landscape. Modern businesses need MSPs with software engineers on staff, and here's why.

The Evolution of the MSP

Twenty years ago, a managed service provider's job was relatively straightforward: keep servers running, fix printer issues, install software, manage backups, and respond when something broke. Technical skills centered around hardware troubleshooting, network configuration, and basic Windows administration.

Then the world got complicated.

The Complexity Explosion

Today's IT environment includes:

Cloud platforms (Azure, AWS, Google Cloud) with hundreds of services
SaaS applications that need integration and automation
API-driven workflows connecting disparate systems
Identity management across multiple platforms
Compliance requirements demanding custom reporting
Security tools requiring scripted responses
Business processes that need custom software solutions
Data living in dozens of disconnected systems

In this environment, traditional "turn it off and on again" IT support doesn't cut it. Modern problems require software engineering skills—the ability to write code, build integrations, and develop custom solutions.

Why Software Engineering Skills Matter for MSPs

At any given moment, your MSP will face situations where the solution isn't available off-the-shelf. Sometimes it's a quick PowerShell script. Sometimes it's a full custom application. But increasingly, the right answer involves writing code.

Scenario 1: The Daily PowerShell Script

Real-World Example: The Licensing Report Dilemma

The problem: A client with 85 employees needs to know exactly which Microsoft 365 licenses are assigned, which are unused, and which users have conflicting license combinations. The Microsoft Admin Center shows this data, but not in a format that answers their specific questions.

Traditional MSP response: "You'll need to manually check each user in the admin portal, or purchase a third-party reporting tool for $500/month."

Software engineering response: Write a PowerShell script that:

Connects to Microsoft Graph API
Pulls all user accounts and their assigned licenses
Cross-references with billing data
Identifies unused licenses and optimization opportunities
Generates a custom Excel report with cost analysis
Schedules to run automatically every Monday morning

Result: Instead of spending $6,000/year on a reporting tool or hours of manual work each month, the client gets exactly the report they need, automatically, at no additional cost. The script takes 2-3 hours to write and saves the client thousands of dollars annually.

Real-World Example: The Security Alert Automation

The problem: The client's security team gets 200+ Azure AD sign-in alerts daily. 95% are false positives, but buried in that noise are real threats. Security staff is drowning in alerts and missing critical issues.

Traditional MSP response: "We can hire someone to monitor the alerts full-time, or you can purchase an advanced SIEM solution starting at $15,000/year."

Software engineering response: Write a PowerShell script that:

Queries Azure AD sign-in logs every 15 minutes
Applies intelligent filtering based on learned patterns
Identifies truly anomalous behavior (impossible travel, unusual locations, repeated failures)
Automatically blocks suspicious IP addresses
Sends targeted alerts only for high-confidence threats
Generates weekly summary reports of security events

Result: Alert volume drops by 92%. Security team focuses on real threats instead of noise. Response time to actual incidents improves from hours to minutes. Development time: 1-2 days. Ongoing value: immeasurable.

These aren't exotic edge cases. These are daily occurrences in modern IT environments. An MSP without software engineering skills either can't solve these problems at all, or recommends expensive third-party tools when a few hours of coding would suffice.

Scenario 2: When "Simple" Problems Need Custom Applications

Sometimes, business problems that sound simple on the surface require custom software development. Off-the-shelf solutions either don't exist, cost far too much, or force the business to change its processes to fit the software.

Real-World Example: The Inventory Check-In System

The problem: A medical equipment company receives returned devices from hospitals that need to be checked in, tested, cleaned, repaired if needed, and returned to inventory. The process involves:

Scanning device serial numbers
Recording condition and needed repairs
Tracking through cleaning/repair process
Updating inventory status when ready to ship again
Generating reports for hospital clients

Current state: Paper forms, Excel spreadsheets, manual data entry, frequent errors, no real-time visibility.

Traditional MSP response: "You need an inventory management system. The ones that can handle medical equipment start at $30,000 plus $500/month, and implementation takes 6 months."

Software engineering response: Build a custom web application that:

Uses barcode scanning on tablets for check-in
Provides a simple workflow for each processing stage
Tracks device history and repair patterns
Integrates with existing QuickBooks for billing
Generates automatic client reports
Provides real-time dashboard of inventory status
Works on tablets, desktops, and phones

Result: Development cost: $18,000. No monthly fees. Perfect fit for their exact workflow. Processing time per device drops from 15 minutes to 3 minutes. Error rate drops to near-zero. Payback period: 4 months. The company gets exactly what they need without forcing their process to fit someone else's software.

Real-World Example: The Client Portal Problem

The problem: A consulting firm needs clients to securely upload documents, view project progress, approve deliverables, and track billing. They have 40 active clients and exchange hundreds of documents monthly.

Current state: Email attachments, Dropbox links, phone calls for status updates, manual invoice distribution. Security concerns. No audit trail. Client confusion.

Traditional MSP response: "Use SharePoint Online with client external access" (confusing for clients, security concerns) or "Purchase a project management platform for $3,000/year" (doesn't match their workflow, requires training).

Software engineering response: Build a custom client portal that:

Provides each client with secure login to their project workspace
Drag-and-drop document upload with automatic client/project tagging
Visual project timeline showing milestones and progress
One-click approval workflow for deliverables
Integrated invoice viewing and payment status
Automatic notifications for important events
Branded with company logo and colors
Integrates with their existing Microsoft 365 and accounting system

Result: Development cost: $22,000. Clients love it—professional, easy to use. Document management time reduced by 70%. Invoices paid 30% faster due to transparency. Competitive advantage in sales presentations. The firm looks more sophisticated than competitors twice their size.

The Skills Gap: What MSPs Are Missing

Most MSPs built their teams around traditional IT support roles. Their technicians are excellent at:

Troubleshooting hardware and software issues
Managing Active Directory and Group Policies
Configuring networks and firewalls
Installing and updating applications
Managing backups and disaster recovery

These skills remain important. But they're no longer sufficient. The modern MSP also needs team members who can:

Write Production Code

PowerShell, Python, JavaScript, C#
Proper error handling and logging
Testing and debugging
Version control (Git)
Documentation

Work with APIs

Microsoft Graph API
REST APIs
Authentication (OAuth, tokens)
API documentation interpretation
Rate limiting and error handling

Database Design & SQL

Database schema design
SQL queries and optimization
Data relationships
Azure SQL, PostgreSQL, etc.
Backup and recovery

Build Web Applications

Frontend frameworks (React, Vue)
Backend development (.NET, Node.js)
User interface design
Responsive/mobile design
Security best practices

Deploy to Cloud

Azure App Services
Azure Functions (serverless)
CI/CD pipelines
Infrastructure as Code
Monitoring and logging

Integrate Systems

Data transformation
Webhook implementations
Scheduled automation
Error handling and retries
Monitoring integrations

The Business Impact of Having Software Engineers on Staff

When your MSP has software engineers, you unlock capabilities that traditional support-only MSPs simply cannot provide:

Speed

Problems that would take weeks waiting for vendor support or months implementing commercial solutions can be solved in days with custom scripts or applications.

Cost Efficiency

A $5,000 custom solution often replaces a $30,000 commercial product, with no ongoing licensing fees and perfect fit to your needs.

Perfect Fit

Custom solutions match your exact workflow instead of forcing you to adapt your business to someone else's software.

Automation

Repetitive tasks that consume hours of staff time can be automated with scripts, freeing your team for higher-value work.

Integration

Disconnected systems can be integrated so data flows seamlessly, eliminating manual data entry and reducing errors.

Competitive Advantage

Custom tools and automation allow small businesses to operate with the efficiency and sophistication of much larger organizations.

Questions to Ask Your MSP

If you're evaluating managed service providers (or evaluating your current MSP), here are important questions to ask:

"Do you have software engineers on staff?"

Not "technicians who can run scripts they found online," but actual software engineers who can design, develop, and maintain custom solutions.

"Can you write PowerShell scripts for automation?"

Ask for examples. Sophisticated automation requires genuine programming skills, not just copying snippets from Google.

"Have you built custom applications for clients?"

Ask about the scope, technology stack, and outcomes. Real software development experience shows in the details.

"How do you handle API integrations?"

Modern IT environments require API-driven integrations. Can they build these, or do they just recommend third-party tools?

"What's your approach when a problem doesn't have an off-the-shelf solution?"

Listen for whether they say "we build a custom solution" or "you'll need to adapt your process to fit available software."

The Vulcan365 Approach: Engineers First

At Vulcan365, we recognized this shift years ago. While we absolutely maintain traditional IT support capabilities—we're excellent at keeping your infrastructure running—we've deliberately built a team that includes experienced software engineers.

Our Engineering Capabilities

PowerShell automation and Azure Functions
Custom web applications (.NET, React, Azure)
Microsoft Graph API integrations
Database design and development
Workflow automation with Power Automate and custom code
Azure cloud architecture and deployment
AI-powered solutions using Azure OpenAI

When We Apply These Skills

Daily: PowerShell scripts for automation and reporting
Weekly: API integrations and data transformations
Monthly: Custom applications for unique business needs
Ongoing: System integrations and workflow automation
Proactive: Identifying opportunities for custom solutions before clients ask

This isn't a separate service we upsell—it's integrated into how we solve problems. When a client calls with an issue, our first question isn't "what product can we sell to fix this?" It's "what's the right solution for this specific situation?" Sometimes that's a commercial product. Often, it's a PowerShell script or a custom application.

Your MSP Should Be a Technology Partner, Not Just a Support Desk

The complexity of modern technology environments means you need a managed service provider that can do more than troubleshoot problems and install software. You need a partner with the engineering skills to build solutions, automate processes, and develop custom applications when off-the-shelf options don't fit.

At any moment, you might need a PowerShell script to solve an immediate problem, or a custom application to address a fundamental business challenge. Make sure your MSP has software engineers who can deliver both.

Discuss Your Technology Challenges Learn About Our Approach

Key Takeaways

Modern IT environments are exponentially more complex than a decade ago, requiring software development skills in addition to traditional support expertise
Daily situations arise where PowerShell scripts can solve problems in hours that would otherwise take weeks or require expensive commercial solutions
Many business problems that sound simple require custom application development for the best solution
Traditional MSPs built around break-fix support lack the software engineering skills needed for modern challenges
MSPs with software engineers on staff can provide faster, more cost-effective, and better-fitted solutions
When evaluating MSPs, ask specifically about software engineering capabilities, not just support experience
The right MSP should be a technology partner who can build solutions, not just a vendor who sells products