I use Linux extensively for my business. I run it on servers only because as a desktop environment I feel OS X is better. For the server tasks that I need Linux works better for me because it's stable, fast, reliable, and the support via forums and online guides is excellent. Plus it doesn't require a reboot for nearly every little software update...
I run Fedora 9 on one server at home, Fedora 8 on another (haven't got around to upgrading it yet). These two boxes aren't super important so the occasional down time for upgrades (Fedora gets a new release every 6 months) is no big deal. I have another server at home running CentOS 5 which is basically a free version of Redhat's Enterprise Linux (built from their source code) only without their support arrangements. The CentOS box is doing remote backups for family business so that one is relatively important.
I also run CentOS within a virtual machine using VMWare Fusion on my Mac. It's just so I can make use of the webserver features in case I am working offline...
I also look after another CentOS box at a Flagstaff Hill office, another in the US (hired from
ServerPronto) and two running in a VPS environment. One with
Net Logistics and another with
Web 24. I occasionally do service work on a few others running in businesses around Adelaide that I setup when I worked for another company who I deployed some servers for.
That said I don't think many small IT shops like deploying Linux servers in small to medium sized businesses because a) there aren't as many Linux techs as Microsoft ones about and b) they break less often so there's far less service work (and in turn income) involved. For example, I deployed a mail filtering server at a big sales company's head office years ago and it basically ran without a single hitch until a fan in the system died which caused it to overheat and crash. They moved the hardware to another machine with working fans and I was in a few months ago for a 1.5 hour service to reconfigure a few things then they were up and going... The Microsoft servers on the other hand need ongoing service just to ensure they keep running, there basically needs to be a tech on hand on a near quarterly basis (at least) just to keep things running relatively smoothly. It's also harder to do remote support and maintenance on Windows servers than it is on Linux machines, in my experience.
PS. This site is hosted on a Linux VPS.

Linux is a very important platform and I think you'll find by far the majority of websites you visit on a daily basis are hosted on open source solutions like Apache (web server) with Linux or other open source software as the server!