Katalyst didn't start as a services-first MSP. When Luke Johnson joined the business, it looked a lot more like a traditional VAR, resale at the core, services stacked around it. Johnson wanted to flip that: turn Katalyst into a midmarket partner that handles the full digital backbone for customers, infrastructure, cloud, cybersecurity, connectivity, day-to-day ops, all of it.That shift now has real backing behind it. Katalyst's partnership with e4n brings outside capital, operator experience, and AI expertise into the mix as the company moves into its next phase. Johnson says the goal is about building deeper security capabilities, automating more of Katalyst's own internal operations, and helping midmarket customers cut through AI vendor noise instead of getting buried in it - not just scaling the existing MSP playbook.The security aspect is what makes this interesting. Katalyst has relied on white-label SOC and SIEM partners up to now, but Johnson said that's changing. The company is bringing those capabilities in-house and a clear signal of where Johnson thinks the market is headed: midmarket customers are dealing with more compliance pressure, more tool sprawl, more security complexity, and they want an MSP that can tell them what actually matters, what needs to change, and who owns the outcome when something goes wrong.ChannelE2E spoke with Luke Johnson, CEO of Katalyst, about Katalyst’s evolution, what the e4n partnership changes, how the company is using AI inside its own business, and why cybersecurity and AI guidance are becoming central to the next phase of MSP growth.
ChannelE2E: You describe Katalyst as a “digital operations partner.” What does that mean in practice?LukeJohnson: It is not a widely used term, but I think it captures what we do. Every organization has a digital backbone, and they need a partner that can help them be accountable for that backbone. For us, that means the infrastructure, hybrid cloud, security, network, connectivity, and related systems that a business depends on every day.
Midmarket customers want somebody who can be accountable from end to end. They do not necessarily want one company to sell them a license, another to integrate it, and another to support it. They want help with procurement, design, solution selection, implementation, day-to-day support, optimization, and planning. There is also a consulting element. Sometimes a customer needs someone to come in, look at what they have, and tell them what they need to do next.Security is a good example. Some organizations have acquired multiple businesses, accumulated a lot of tools, and are not really sure what each one does. They may think they are doing a good job, but they are not fully sure. Katalyst can come in, give them a full picture of what is happening, make recommendations, and then help action on those recommendations.ChannelE2E: How much of Katalyst’s business is security today, and how are those services delivered?LukeJohnson: Security is a big portion of the business today. It spans compliance, endpoint protection, event and log aggregation, firewall management, privileged access, and broader consulting and managed services.We help customers understand whether they are meeting the regulations they need to meet, whether that is in healthcare, financial services, or another regulated market. We look at whether they are doing the right things on endpoint protection, whether they are aggregating logs properly and whether somebody is reviewing and acting on those events.There is also the firewall side: Are they using the right solutions? Are those solutions configured correctly? Are the right rule sets in place? Privileged access is another major area. Who has rights to do what? If employees or administrators leave, is that being managed correctly?Historically, Katalyst has partnered with another organization to provide white-label SOC and SIEM services. That will change in the near future. We are building our own SOC and SIEM capability internally. That was a big part of the e4n partnership discussion. We looked at whether we should acquire an MSSP or build internally, and we have decided to build.ChannelE2E: Let’s talk about the e4n partnership. What exactly changed for Katalyst?LukeJohnson: I went to market about a year ago looking for the right partner to help grow the business. The goal was to build a broader platform, grow both organically and through acquisitions, and find someone aligned with that vision. That partner ended up being e4n.Part of the value is capital, but the bigger piece for me was the operator-led model. The e4n team has deep experience in finance, rollups, integration, and technology. Lucas Fischer, one of the e4n leaders, created Dataka Lab and sold that company to Apple. He has deep AI expertise. Hervé Tessler, e4n’s CEO, spent more than 30 years at Xerox in senior executive roles and also ran a global MSP called Noventiq, where he grew the business significantly and completed a number of acquisitions.That operator experience matters. We are building this platform together.ChannelE2E: AI is putting pressure on MSPs to automate their own operations while also advising customers. Where is Katalyst using AI today?Luke Johnson: Like everybody, we are not pretending we have it all figured out. Nobody does. We are experimenting, and I would like to think we are a bit ahead because we have been trying a lot of things for a while.Most of that work has been internal so far. The goal is to improve the quality of life for employees. In a smaller organization, there is always too much to do and not enough time to do it. AI can take some of that work off people’s plates and let them focus more on the work they enjoy and the work that matters to customers.Timekeeping is a good example. How do you reduce the time people spend recording time and let AI help with that, so they can spend more time with customers? We are experimenting across sales, technical operations, engineering, and other parts of the business.In the past month, with Lucas involved, we have accomplished more than we had in the prior six to nine months. We are starting to see AI put time back into people’s days.ChannelE2E: Do you see AI as a way to replace labor, or as a way to make your teams more productive?Luke Johnson: Our theory is not about eliminating people. We believe humans have to remain at the center. If you let AI run wild, it can get you in trouble. People still need to guide it.But we do believe AI can make people far more efficient. You can ultimately do more with less. A lot of MSPs, once they reach a certain size, begin outsourcing certain functions to other countries for labor efficiency. I think AI changes that dynamic. I do not see us going heavily in that direction because I think we will become more efficient as we move forward.The same thinking applies to the MSSP build. We will have a significant AI layer in that business. Part of the decision to build rather than buy was about being AI-native instead of trying to retrofit AI into an existing model. The traditional definition of Level 1 work is going to change. AI will likely handle a lot of what used to be Level 1 work, and I do not think that is bad for people. I think Level 1 people become Level 2, and everybody moves up.ChannelE2E: What are customers asking you about AI right now?Luke Johnson: Most midmarket customers are still asking, “What do we actually do here?” They are not clear on the right path.Some of the decisions sound simple, but they have big implications. What should the governance model be? What is acceptable use? What is not acceptable? What solution should they use? Should they standardize on Microsoft Copilot, Claude, OpenAI, or use multiple tools? Should they open access broadly or start with small groups and compare results?They are also getting approached by a lot of vendors that say they can transform customer experience, operations or another part of the business overnight. Customers are asking whether those claims are real or just noise.That creates a major opportunity for MSPs. We are putting together offerings that help customers understand how to approach AI, how to govern it, and how to choose the right tools. I believe the MSP is in the best position to do this for the midmarket because, when the relationship is done right, customers trust their MSP and look to them for guidance.ChannelE2E: Where do you see the strongest growth opportunity for Katalyst over the next two or three years?Luke Johnson: I think security is the strongest growth area.Security has always been a strong opportunity, but everything happening in the market is increasing the need. The complexity is going to keep growing, and customers will need help sorting through the noise and figuring out how to manage their risks in a practical way.AI adds to that. AI will increase the need for security, and it will also be used to help deliver security. There are two sides to it. The threat landscape will continue to grow, and organizations will need more help managing it.The proliferation of tools and technologies also makes it difficult for customers to keep up on their own. That challenge is real for MSPs too. There is a lot we have to learn how to manage, and we have to manage it efficiently.The second major opportunity is AI guidance. Customers need help understanding which tools make sense, which areas of the business to tackle first, and how to approach implementation. We also see opportunity in creating validated designs for specific industries. Financial services is an area we are passionate about, especially credit unions. There is room to build purpose-built solutions that are ready to go, aligned with the vendors those customers already use, and designed around the workflows they already have.ChannelE2E: Does the e4n deal change how you think about acquisitions?Luke Johnson: There is definitely an inorganic component. We will be doing M&A.At the same time, these are people businesses. Cultural fit matters. We want to appeal to owners and founders who may want to join something bigger, but something that feels different from some of the obvious names in the market.We are patient. We do not have a timer behind us saying we have to accomplish a specific thing three years from now. We think we can give MSP founders and owners something different to join, while taking some things off their plate and letting them focus on the parts of the business they are most interested in.ChannelE2E: What should the channel take away from this next phase for Katalyst?Luke Johnson: The core of the business is staying the same, but we now have more backing and more capability behind us.We are focused on the midmarket, on being accountable for the systems customers depend on, and on building stronger capabilities around cybersecurity, automation, and AI. The opportunity is to help customers make sense of growing complexity and give them a partner that can stay with them from strategy through execution and ongoing operations.
Suparna is the Senior Managing Editor for CyberRisk Alliance’s Channel Brands, including MSSP Alert and ChannelE2E. She manages content development, sharpens editorial workflows, and ensures storytelling is tightly aligned with audience needs. With a background in technology, media, and education, she combines strategic insight with creative execution.
