This has been long in coming. I feel for the people involved.
Violin makes proprietary flash modules and chassis, to provide an all flash “array”. The performance is somewhat “meh”, and the cost is high. Like most of the rest of the companies in this space, their latest model bits are quite a bit below Scalable’s 4 year old models, never mind the new stuff.
Since the IPO, they’ve been on something of a monotonic down-direction in share price. This is because the market is crowded with flash array wanna-bes, there is little real differentiation apart from real performance (which precious few actually have).
Call them the first of many. I don’t see consolidation anymore, I see companies going bust.
Sad that this is happening to good people, but it is just the leading edge of the wave. You should expect to hear about others soon.