For webservers I prefer Linux. Linux makes great backup servers as well. I'm not sure sure that Linux can compete with Windows in the office server realm, though (where the server is used to manage profiles and permissions for users of an entire network/company, etc).
On the desktop, I think Linux is perfectly fine for computers that are intended for use mainly as Internet terminals but not really as a workstation. Windows still seems to be far ahead in terms of usability, software availability, etc.
I suppose they both have their pros and it just depends on what you will be using them for.
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