The name Erlang, attributed to Bjarne Däcker, has been presumed by those working on the telephony switches (for whom the language was designed) to be a reference to Danish mathematician and engineer Agner Krarup Erlang and a syllabic abbreviation of "Ericsson Language". Erlang was designed with the aim of improving the development of telephony applications. The initial version of Erlang was implemented in Prolog and was influenced by the programming language PLEX used in earlier Ericsson exchanges. By 1988 Erlang had proven that it was suitable for prototyping telephone exchanges, but the Prolog interpreter was far too slow. One group within Ericsson estimated that it would need to be 40 times faster to be suitable for production use. In 1992, work began on the BEAM virtual machine (VM) which compiles Erlang to C using a mix of natively compiled code and threaded code to strike a balance between performance and disk space. According to co-inventor Joe Armstrong, the language went from lab product to real applications following the collapse of the next-generation AXE telephone exchange named AXE-N in 1995. As a result, Erlang was chosen for the next Asynchronous Transfer Mode (ATM) exchange AXD.
