I came across this is in the process of writing up a report: Erlang in Acoustic Ray Tracing.
It's an experience report on a research group's attempt to use Erlang for Acoustic Ray Tracing. They found that while it was easier to write the program, less buggy, etc. It scaled worse, and performed 10x slower than a comparable C program. So one spot where it may not be well suited is CPU intensive scenarios.
Do note though, that the people wrote the paper were in the stages of first learning Erlang, and may not have known the proper development procedures for CPU intensive Erlang.
