I run a software co. here in bombay and for the past 2 years we have been developing customized applications on a Linux based platform. Initially we started out on a Red Hat 5.2 OS and immediately began making an impact with our customers as Linux offers great stability and lowers the TCO for IT managers. Since those early days Red Hat has made a lot of strides in the regions of server manageability. I would definitely recommend it to people using windows based servers, as it come with all the basic and advanced tools for server management , hosting , security and whole load of backend and front apps. for budding developers.
As a desktop OS Red Hat has some way to go despite having competent GUI managers like gnome and KDE, so I say to all those desktop users give it some time :)