I remember reading "Erlang - A survey of the language and its industrial applications" (Joe Armstrong - in INAP'96)
Now I've checked again, so let me summarize:
It started to spread "outside the lab" in 1987. In 1995 there were three commercial applications: network simulator, mobility server and distributed resource controller. First is a simulator, not running on the specialized hardware, the third was running on "a network of Windows NT machines." The second: "acts as a call control system when linked to the PBX"
OK, the second was running on the additional SPARC-based machine, not big iron, but AFAIK certainly more powerful than the PC's of that time.
So I don't see anything that was targeting really "specialized hardware" particularly not what we'd think as embedded (less power consumption, slower processors than the PC CPU's). It was a research project, and it had traditionally performance problems.
Even today, after so many years, when you compare Erlang HiPe (Hi Perf, you can imagine others then!) with something higher than C, let's then say Lua JIT it's easy to see which one is faster:
http://shootout.alioth.debian.org/u32/benchmark.php?test=all...
Edit: Or for multi core 64 bits with Mono:
http://shootout.alioth.debian.org/u64q/benchmark.php?test=al...